What is value investing during Fed rate hikes? With the Fed funds rate holding at 5.25–5.50%, value investors are focusing on financials benefiting from higher net interest margins, such as JPMorgan, which recently reported a 9% YoY revenue increase at a 10x forward P/E. Value investing demands patience and discipline, as determining a stock’s intrinsic value involves careful financial analysis and judgment, making the process often complex and time-intensive. Rationalizations often emerge to keep bull markets going. One these days is “TACO,” which stands for “Trump Always Chickens Out.” The suggestion is that his strongest threats – and some of investors’ worst resulting fears – won’t be realized. What is value investing in rate-sensitive sectors? REITs with low debt-to-equity ratios stand resilient despite high borrowing costs, giving investors steady income streams in an otherwise volatile real estate market.