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Quarter-End Insights

Financials Stocks Should Handle Rising Interest Rates Better Than Other Sectors

Most of the sector is fairly valued.

Michael Wong, CFA, CPA

Apr 5, 2021

Mentioned: American International Group Inc (AIG) , Wells Fargo & Co (WFC) , Berkshire Hathaway Inc (BRK.B)

The Morningstar US Financial Services Index has outperformed the Morningstar US Market Index over the previous year, returning 60.9% compared with 58.4%, and significantly outperformed in the previous quarter, up 14.3% compared with the market, which is up 6.0%.

Financials outperformed in the first quarter - source: Morningstar

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Michael Wong does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.

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