Stocks to own in a high interest rate macro environment
Companies that do well – Rent Sesking / Royalty Seeking Products
Several tech giants have figured out how to make money in a high interest rate environment. These companies have so called ‘royalty ‘ revenues. e.g. Universal Music has royalty revenue. Google and facebook (Meta) too have royalty revenues – as their ad platforms keep running and generating cash – no matter what the macro environment is.
Such companies do well in high risk macro environments.
My own portfolio
While I agree with the thinking behind this (I forgot the gentleman on CNBC that I saw promoting this). these stocks still grow at far too slow a pace for my own portfolio. I prefer slightly higher risk and higher growth stocks. My top picks for the 2023 environment are the fintech companies SOFI and AFRM. I also like MRNA – which has potential well beyond the upcoming flu/covid combo vaccine.
Anuj holds professional certifications in Google Cloud, AWS as well as certifications in Docker and App Performance Tools such as New Relic. He specializes in Cloud Security, Data Encryption and Container Technologies.
Anuj Varma – who has written 1217 posts on Anuj Varma, Hands-On Technology Architect, Clean Air Activist.
Leave a Reply