These stock-market sectors tend to do best before the Fed delivers a final rate hike, says RBC

According to a top strategist at RBC Capital Markets, investors are still curious to know which stock market sectors typically perform the best in the period prior to the final increase of a rate-hike cycle

despite hopes for a pivot by Federal Reserve policy makers away from aggressive rate increases appearing to be, once again, a mirage.

According to Lori Calvasina, head of U.S. equity strategy at RBC Capital Markets, stocks in traditional defensive sectors

such as consumer staples, healthcare, and utilities—often outperform prior to the final rate hikes.

These sectors also tend to outperform when it comes to energy and financial stocks.

On a year-to-date basis, each of these five sectors has outperformed the S&P 500 in 2022. 


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