Positioning for Higher Rates

As the Federal Reserve shifts toward tightening monetary policy, investors are increasingly focused on how higher rates will reshape the North American equity landscape. Leveraging in-depth analyst insights, this cross-sector thematic report highlights industries and identifies top actionable stock ideas best positioned to benefit—or face headwinds—from anticipated rate increases. J.P. Morgan economists expect the fed funds rate to move from 4.00% to 4.25% in December and then stay on hold, with the 10-year yield hovering near ~5.00%. While higher-for-longer rates have broad implications for consumer affordability, housing, capex and the business cycle, the current backdrop should not derail equities given the strong earnings anchor;