The Fed just raised rates, here are three groups to buy

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+ADw-p+AD4-J.P. Morgan Private Bank’s Stephen Parker is highlighting three groups that could outperform as interest rates climb.+ADw-/p+AD4

+ADw-p+AD4-His first top pick: energy.+ADw-/p+AD4
+ADw-p+AD4AIg-If you go back and look historically near the end of a cycle, +ADw-a class+AD0AIg-inline+AF8-quotes+ACI href+AD0AIg-https://www.cnbc.com/quotes/?symbol+AD0-XLE+ACIAPg-energy+ADw-/a+AD4 has almost always outperformed and often times by a pretty meaningful amount,+ACI the bank’s head of thematic equity solutions said on CNBC’s +ACIAPA-a href+AD0AIg-https://www.cnbc.com/trading-nation/+ACIAPg-Trading Nation+ADw-/a+AD4.+ACI +ACI-The reason for that is you tend to see a pickup in inflation.+ACIAPA-/p+AD4

+ADw-p+AD4-His thoughts came on Wednesday shortly after the Federal Reserve +ADw-a href+AD0AIg-https://www.cnbc.com/2018/06/13/fed-hikes-rate-by-a-quarter-point.html+ACIAPg-announced its second interest rate hike+ADw-/a+AD4 of the year and suggested two more increases are still possible.+ADw-/p+AD4
+ADw-p+AD4-According to Parker, the Fed’s intention to raise rates multiple times in 2018 also bodes well for +ADw-a class+AD0AIg-inline+AF8-quotes+ACI href+AD0AIg-https://www.cnbc.com/quotes/?symbol+AD0-XLF+ACIAPg-financials+ADw-/a+AD4 +IBQ particularly regional banks.+ADw-/p+AD4
+ADw-p+AD4AIg-Obviously, there’s the trade on higher rates,+ACI Parker said. +ACI-They are also big beneficiaries of deregulation +AFs-and+AF0 tax cuts. I think you could also start seeing as a result of this deregulation, a pickup in M+ACY-amp+ADs-A activity in which these regional banks could be attractive targets.+ACIAPA-/p+AD4
+ADw-p+AD4-For his third pick, he favors +ADw-a class+AD0AIg-inline+AF8-quotes+ACI href+AD0AIg-https://www.cnbc.com/quotes/?symbol+AD0-EEM+ACIAPg-emerging markets+ADw-/a+AD4. Despite pressure from a rising +ADw-a class+AD0AIg-inline+AF8-quotes+ACI href+AD0AIg-https://www.cnbc.com/quotes/?symbol+AD0.DXY+ACIAPg-dollar+ADw-/a+AD4, Parker said some emerging economies are showing much more resilience than previous cycles.+ADw-/p+AD4
+ADw-p+AD4AIg-When you look for example at emerging Asia, one of our favorite regions, that’s actually still up for the year,+ACI Parker said. +ACI-If we were to see a meaningful rally in the dollar, certainly that would impact sentiment negatively. But we think this weakness is an opportunity to get in.+ACIAPA-/p+AD4
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