Other economic indicators are still sluggish, but new-car sales in the U.S. have roared ahead recently, thanks in part to cheap financing deals spurred by super-low interest rates. Few automakers have benefited more than Ford (NYSE: F ) , which has posted booming profits -- and Ford stock has recently boomed as well.
Now, though, interest rates are starting to rise. Are the automakers worried? Should Ford shareholders be worried? On the contrary: Ford executives are very glad that rates are rising. While higher interest rates will make car loans a little more expensive, they'll also help Ford by lowering the risk of its pension portfolio.
If you're invested in Ford stock, pay attention: Risks surrounding Ford's pension plans may have been holding Ford's stock price back for the last couple of years. In this video, Fool contributor John Rosevear explains what you need to know -- and why today's rising interest rates could turn out to be a boon for Ford shareholders.
More great investment ideas from The Motley Fool
The best investing approach is to choose great companies and stick with them for the long term. The Motley Fool's free report "3 Stocks That Will Help You Retire Rich" names stocks that could help you build long-term wealth and retire well, along with some winning wealth-building strategies that every investor should be aware of. Click here now to keep reading.