 Hey everyone, this is Dan with another episode of my rising interest rate videos. I posted my last video on this topic 10 days ago and shared my findings that the semiconductor sector and the finance sectors were the top-performing sectors in the years when the interest rates were rising during the last 22 years. Today I've expanded my study and included 12 industry sectors for comparison. I found something more than last time and would like to share with you about it. Let's get into the details. First of all, I'd like to remind you that I'm not a financial advisor. I share my stock trading strategies and analyses for entertainment and educational purposes only. If you want to invest in the stock market, you should make your own decisions and you should definitely consult with your financial advisors before you do so. Let's continue. This is the chart that I showed in my last video. You can see that in the last 22 years, indeed, the interest rates have been trending downwards. On this chart, I'm showing TYX, the 20-year Treasury Index, the red line and the middle line, candlestick chart, TNX, the 10-year Treasury Index, and the bottom line, the yellow line, FEX, the 5-year Treasury Index. They are more or less moving in step with each other. If you look into the details, you will see that the rates actually have been increasing in the last year and a half. Let's zoom into the last year. This is the picture, definitely especially in the last six months. The rates have been rising rather quickly. In the last 30 days from December 3rd to January 14th, definitely the rates have been rising. A recent news article from the New York Times said that the Fed officials have been talking about raising rates sooner and faster in 2022 and the central bankers are talking about raising the interest rate three times in 2022. Definitely we need to be prepared for that. The question is, where do we invest our money so that we can continue to make profits? I downloaded the data for the 10-year Treasury Index, TNX, for the last 22 years from 2000 to 2022, January 2022, that is. And then in this particular chart, I'm just listing the data for the Finance ETF XLF and the Semiconductor ETF SMH. Actually I included the ETFs of representative stocks for 12 different sectors. I'll show you those sectors in the next few minutes. And from the 22 years, I calculated the change from one year to the next. For example, from the year 2009 and 2010, the 10-year Treasury rate went up by 59%. And the Semiconductor ETF, it went up by 55% during that one year. And the Finance ETF XLF went up by 19% during that one year. As you can see, most of the years in the last 22 years have been seeing decrease in interest rates. However, I found three of those years that have increases in interest rates. They are 2009 to 2010, 2013 to 2014, and 2021 to 2022, from January to January, that is. And out of these three years, you can see that the Finance sector and the Semiconductor sector also went up. And that's why in my last video, I drew the conclusion that I would be investing in these two sectors when the rates continue to go up this year. For this study, I've included these 12 sectors. Finance sector, XLF, Semiconductor sector represented by ETF SMH, consumer discretionary sector represented by XLY, healthcare, utilities, consumer staples, technology sector, industrial sector, energy materials, real estate sector represented by the ETF VNQ and the communications sector. Ideally, I want to use XLC, but with XLC, it doesn't go all the way back to 2000. And that's why I use the top four stocks with an XLC to represent the communications sector. And they are Alphabet, AT&T, Comcast, and Verizon. And after I crunched through all the data, I found these percentage increases for these three years. 2010, that's 2009 to 2010, 2013 to 2014, and 2021 to 2022. I then rank these sectors for each of the three years. Here's what I have. For example, for 2010, the semiconductor sector ranked as number one. Consumer discretionary ranked as number five and finance number seven. Then I averaged the rankings for each sector. And then compared them, I found that the semiconductor sector is number one. Consumer discretionary is number two. And then finance number three. If you like what you've seen so far, I'd like to recommend that you click the like, subscribe, and notification button so that you'll be notified when I post my next video. It'll also encourage me to make more videos like this in the future. Let's continue. These are the top holdings in the three ETFs, representing the three sectors, semiconductor, sector, NVIDIA, Intel, Broadcom, QCom, Micron Technology, Texas Instrument, AMD, ASML. Consumer discretionary top holdings, Amazon, Tesla, McDonald's, Home Depot, Lowe's, Nike, Starbucks, Target, Finance, Berkshire Hathaway B, JP Morgan Chase, Bank of America, Wells Fargo, Morgan Stanley, Charles Schwab, Goldman Sachs, and Citibank. What are my strategies? First of all, I'd like to mention that the analysis is based on an assumption that the market is still rising overall, or at least going horizontally, when the interest rates are rising. Historically, there were times that when the interest rates were going up so fast that the stock market started to sink, and when that happens, I would switch to the crash protection strategies, which I cover in quite a few of my videos. You can find it in my YouTube channel. Basically, these strategies are for a generally bullish market, with interest rates rising gradually. I will invest in XLY, the consumer discretionary ETF, SMH, the semiconductor ETF, and I will buy the stocks of semiconductor companies with very strong cash flows, such as AMD and ASML, two of my favorite semiconductor stocks, and I will invest in XLF, the finance ETF, FAS, which is a triple finance ETF, and bank stocks. I will invest in SPY and QQQ in general, especially when the market is still bullish. I will probably invest in TMV, the ETF for 20-year trash re-rate. I will stay away from Gold, Silver, and Copper. I did not show those slides in this deck, but I covered the analysis of Gold, Silver, and Copper on my January 7th video on this topic. You might want to go back to that video and look it up. I will definitely stay away from meme stocks and stocks with poor cash flows. I will continue to be mindful of the broad market conditions, and I will update my Twitter subscribers daily. At this point, I would suggest that you also subscribe to my Twitter account, which is DanMarketL. For example, on December 30th, I tweeted that I bought FAS, the finance ETF, in anticipation of interest rate increase, and then on January 5th, I sold FAS because it started to drop. At that point, I already realized a 5.5% gain. Also I bought XLF previously, so XLF on the same day and realized a 2.5% gain. And then on January 7th, FAS started to rebound, so I bought more shares. Then on January 11th, I bought ASML shares. I explained that ASML dropped a lot on January 7th due to a fire in the Berlin factory, and the factory has reportedly resumed almost full normal operations. As usual, I will very much welcome your comments, questions, and suggestions. This wraps up my video for now. I will chat with you again in the next few days. In the meanwhile, I would like to wish you the very best of luck with your financial investments.