Financial companies are usually beneficiaries of a rising interest rate environment. Although 10 consecutive interest rate hikes by the Fed since last year took the Fed funds rate to the highest level since August 2007, not all financial stocks are well-positioned to benefit from it. Given their weak fundamentals, I think BRP Group, Inc. (BRP), Forge Global Holdings, Inc. (FRGE), and Argo Blockchain plc (ARBK) are best avoided now.
Before diving deeper into the fundamentals of these stocks, let’s discuss what’s happening in the financial industry.
