The Good News About Higher Rates

Putnam's Bart Geer says they'll usher in gains for higher quality companies -- just the type he favors

The U.S. has finally gotten the economic recovery it has long wished for. But with better times come higher interest rates. For Bart Geer, managing director and senior portfolio manager for Putnam Investments' large-cap value team, the worry over rising rates is good news. After all, Putnam's Equity Income Fund (PEYAX ), which is led by Geer, emphasizes dividend-paying names and value. He points out that the market has already started turning away from riskier investments in favor of "higher quality" companies.

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