An Excellent Speculation on Higher Interest Rates
If interest rates never rise, this wide-moat stock will be on a trajectory to return a modest 7% a year. But if interest rates increase, it’ll be a wide moat stock on a trajectory to return an excellent 10% a year.
This stock will be an acceptable, but not especially profitable investment, if the Fed never raises interest rates. But once the Fed does start raising rates, it’ll be a good long-term investment. The stock should provide excellent annual returns during the 5-year period where interest rates increase at the fastest pace.
If you’re looking for an excellent medium-term–say 2016 through 2021–speculation on higher interest rates, this is the stock.
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