(SitNews) - Hey Taylor: Lots of variables to track in our current economy, but I’m wondering what you think about ways to invest while interest rates are rising. Rate hikes seem like the only sure thing right now, so how does the modern investor factor that in? - John

Hey John: Solid, timely question. You should never take a break from putting your money to work, so it’s all about adjusting to meet the situation. Rising rates hurt in some ways and help in others, meaning you’ve got opportunities no matter what’s going on. Here are a couple of options that should be on your radar. 

1. Quality stocks. It’s not like you should be buying bad stocks when rates are down, but certain shares will fare better than others as the fed does its thing. For example, an overleveraged company with a great product struggles more with rate hikes than a company with big cash reserves. That might not be something you think about on a typical stock trading day, but it’s worth considering if you’re trying to stay ahead of interest. I always tell people to invest in companies they love, and that approach holds true no matter what APRs are doing. At this moment, when you’re looking over all the businesses you support, keep an eye out for which ones have more cash in the bank. 

2. Banks. Who’s going to make the most money off of higher interest rates? The companies charging interest, of course! While borrowing takes a bit of a dive when rates go up, it doesn’t stop altogether and the increase in interest revenue usually looks good on paper for the lenders. Aside from the big banks you know about, this could be the moment when we see one of the smaller, alternative lending companies surge after such a long stretch of lower rates. Lots and lots of banks out there for you to choose from as an investor.

3. Real estate. It’s a bummer when you have to accept a high mortgage rate, but that doesn’t diminish the overall value of the property. Home sales are slowing as we speak, so prices won’t be rising as they had been for the foreseeable future. Don’t get caught up thinking you need to buy a house or a rental property when interest rates are low to make it a worthy investment. Real estate can be worth owning, as long as you can afford the property you invest in. 

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