3 Stocks That Did Well the Last Time the Fed Raised Rates Aggressively
The Federal Reserve has raised interest rates, with more hikes expected. Three stocks that performed well during the 2022 rate hikes are ExxonMobil (XOM), Merck (MRK), and Super Micro Computer (SMCI). ExxonMobil gained 80% in 2022, benefiting from high oil prices and offering a 2.4% dividend yield. Merck rose 45% in 2022, with strong sales and a 2.3% dividend yield. Super Micro Computer surged 87% in 2022 but faces recent challenges, including auditor resignation and legal issues.
How this was made
The 30-second read
Why it matters
Provides no new corporate disclosures; serves as a thematic opinion piece.
Market read
The article offers thematic guidance without new data, limiting its trading relevance.
What to watch
The piece ignores current valuation levels, competitive dynamics, and upcoming earnings releases.
Background
The article is a retrospective list of three stocks that performed well during the 2022 aggressive Fed rate‑hike cycle, presented as potential opportunities amid the current rate‑hike environment.
Ticker impact
ExxonMobil is highlighted as a stock that performed well during the 2022 aggressive Fed rate hikes and is suggested as a potential buy now.
potential modest upside if investors seek rate‑resilient energy exposure
No new corporate news; the piece only recaps past performance and offers a forward‑looking opinion.
Merck is presented as a historically defensive health‑care stock that rose during the 2022 rate‑hike cycle and is again performing well.
possible modest upside if defensive positioning remains attractive
Only historical performance is cited; no new earnings, guidance, or catalyst disclosed.
Super Micro Computer is noted for its strong 2022 rally during rate hikes, but the article warns of recent governance and legal concerns.
limited upside; potential downside from recent auditor resignation and legal issues
The content is a retrospective analysis without fresh disclosures.
Market effects
Highlights energy, health‑care, and niche tech as historically rate‑resilient sectors.
No specific regional effect; commentary is U.S.‑focused.
Limited; the article offers generic guidance rather than new global data.
Counterpoint
Investors might avoid SMCI due to recent governance concerns despite past performance.
Key entities
- companyExxonMobil
Energy giant cited for past strong performance.
- companyMerck
Pharmaceutical firm highlighted for defensive qualities.
- companySuper Micro Computer
Tech hardware maker noted for 2022 rally but recent issues.
