If Interest Rates Are Peaking, What Investments Are Likely to Do Best?

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If Interest Rates Are Peaking, What Investments Are Likely to Do Best?
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Judging from past rate plateaus, it may pay to bet on small-cap and growth stocks—and to do it early

it could pause interest-rate increases if inflation continues to cool, a rate peak may be at hand in the U.S.

That would be welcomed by interest-rate-sensitive borrowers and lenders after more than a year and a half of rate increases. But what does a rate peak mean for investors’ portfolios, and how can they take advantage of it?China’s economy, war in the Middle East and a predicted El Niño are among the factors experts are looking at.Copyright ©2023 Dow Jones & Company, Inc.

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