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Invest in companies that will benefit from inflation. Ones with low capital and debt requirements. This happens to be most of the S&P500 these days already.
by __alexs 5y ago
Invest in companies that will benefit from inflation. Ones with low capital and debt requirements. This happens to be most of the S&P500 these days already.
- dnadler 5y agoCompanies that have a large amount of fixed rate debt on their books may benefit as well.
- __alexs 5y agoProbably depends on the duration of the bonds? I'd have thought anyone holding long term bonds when interest rates rise is going to be hurting.
- auntienomen 5y agoYou're right that holding debt through an interest rate rise will hurt, but I think the parent poster meant companies that issue debt, not ones that hold it.