This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

With low rates investors choose risk and reward, but will they stay?

By Robbie Citrino for Kapitall.

With the announcements that the Federal Reserve will continue their current tapering strategy and keep interest rates low as inflation picks up, shares of high-risk stocks such as Netflix (NFLX), Tesla (TSLA), Fireeye (FEYE), and Solar City (SCTY) all jumped.

This switch to a greater risk alternative, over bonds and other vehicles, displays how shareholders are seeking out options that will continue to produce results as the bond market remains dry and unfruitful.

Since the Fed didn't exceed the market’s prediction with its bond purchase cutback, these stocks have seen a significant rebound from lows reached in April and May, during which time investors prepped for a switch to more stable alternatives.

From their respective 2014 troughs, Tesla and Solar City have rebounded 27% and 42% respectively, while the broad  S&P 500 (SPX) gained a less eye-popping 4.7%.

The Russell 2000, an index of small-cap companies that's traditionally somewhat riskier but with higher growth potential, has gained almost 8% since its low in May. Flirting with record highs, this index has also expanded its price-to-earnings (P/E) ratio almost 40% (from 59 to 83) over the past year. 

The only question now is how long it will last. Could we see an increasing demand for risky tech, or will investors shy away as rates increase?

We built this list of high-beta stocks with high gains on the news. Do you think they'll continue to outperform? Use the list below to begin your analysis.

Click on the interactive chart to view data over time. 


1. FireEye, Inc. ( FEYE, Earnings, Analysts, Financials): Provides products and services for detecting, preventing, and resolving advanced cybersecurity threats. Market cap at $5.28B, most recent closing price at $37.72.

Beta: 3.45 vs industry average of 1.04

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $95.01 0.00%
FB $99.51 -0.24%
GOOG $677.65 -0.75%
TSLA $148.25 0.18%
YHOO $26.82 -0.85%


Chart of I:DJI
DOW 16,014.38 -12.67 -0.08%
S&P 500 1,852.21 -1.23 -0.07%
NASDAQ 4,268.7630 -14.99 -0.35%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs