Best stock market sectors for inflation spike amid yields threat: RBC

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RBC's US equities chief shares 3 sector recommendations to profit from higher yields — with 3 reasons why stocks are still primed for gains despite the scare from the bond market

touched early 2020 levels, spooking stock investors who quickly rushed to abandon their riskier assets. throughout 2020 despite the pandemic, took a few steps back. Tech stocks that were crisis winners took a big hit, as the Nasdaq 100 index fell by the most in almost a year.on the back of better economic growth expectations and the vaccine rollout. As Bank of America's Savita Subramanian observed, the 10-year, which hit a one-year high above 1.

"While the swiftness of the move has caught some investors off guard, we aren't overly worried about the move turning 2021 into a down year for three reasons," Calvasina wrote in a Feb. 23 note. is still more appealing than the 10-year Treasury note. This comes after she identified a number of companies whose dividend yield is above that of one of the 10-year Treasury bonds.

 

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