5 ms·

Pension funds dumping their tech investments?

• toomuchtodo 4y ago
  Sector rotation based on the macro. Capital fleeing to asset classes with more favorable risk adjusted returns in a rising interest rate (with possible stagflation) environment.
  • mgh2 4y ago
    > Capital fleeing to asset classes with more favorable risk adjusted returns in a rising interest rate Which markets, care to ellaborate?
    • leet_thow 4y ago
      Energy, Consumer Staples and Utilities from my research.
      • toomuchtodo 4y ago
        Also commodities.
      • abraxas 4y ago
        Wouldn't utilities (famous for their large dividend distributions) get creamed in a rising interest rate environment?
        • toomuchtodo 4y ago
          Electricity and gas are typically non discretionary spending.
          • abraxas 4y ago
            No question but utilities' distributions have to compete with higher treasury yields so that would be pushing downwards pressure on their prices. Actually in a tight money environment I don't really think there is a place to hide. Bonds and stocks are both likely to decline across the board. Cash and gold might be the best refuge.