There are plenty of signs that the U.S. economy has recovered from the recent recession, and that conditions continue to improve. One big catalyst for the recovery has been the Federal Reserve's aggressive stimulus program. In order to stimulate the economy, the Federal Reserve has used a wide variety of methods to keep interest rates low, which has boosted the economy, and the stock market, in the process.
While low interest rates have pushed stock markets to record highs, the concern is that as the economy improves and the Federal Reserve allows interest rates to rise, that the job market could collapse, stalling the economic recovery and crashing the stock market. These fears are a reason why the market has cooled off a bit from last year's strong bullish run, as traders believed the Federal Reserve was nearing a decision to slowly lift interest rates.
The good news is that newly appointed Federal Reserve Chairwoman Janet Yellen recently assured the market that she expects interest rates to remain low “for a considerable time”. What has spooked the markets is the Fed's move to end bond buying in October, but Yellen has asserted that there are no plans abegin raising rates as soon as the bond-buying program ends, and such a move should not be expected until at least mid-2015 and possibly much later depending on the overall economic momentum of the nation.
As a result, interest rates may slowly inch higher, but for the most part are expected to remain low for at least another year or so. One thing is certain… interest rates will eventually move higher, but until they do, here are a few stocks that investors may consider buying while interest rates are low.