These cheap stocks positively correlated to rising rates are ready to run, Credit Suisse says

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New for subscribers: These cheap stocks positively correlated to rising rates are ready to run, Credit Suisse says. Check out CNBCPro today.

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The recent rise in interest rates could be a signal to move into value stocks, according to Credit Suisse. The benchmark 10-year Treasury yield was rising back toward the 1.5% level after breaking through that level last week. The measure was trading below 1% at the start of the year, making this an unusually sharp rise, fueling some concern about a rise in inflation during the economic recovery from the pandemic.

Inflation and rising rates are seen as a negative for many stocks because they can make higher valuations seem less attractive, and "the valuation of growth relative to value is clearly extreme," according to Credit Suisse's Andrew Garthwaite.

 

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