Are you concerned about the impact of high inflation and interest rates on your stock portfolio? You’re not alone. Investors are increasingly worried about the challenges companies face from rising borrowing costs and the need to raise prices in a high inflation environment.
At Extreme Investor Network, we understand the importance of finding stocks that can help hedge against the effects of inflation and high interest rates. That’s why we’re excited to share insights from Trivariate Research, a leading voice in the investing world. According to Trivariate, some stocks are better positioned than others to weather the storm of high inflation and interest rates.
In the past, high-quality growth stocks were negatively correlated to inflation, meaning their stock prices suffered as inflation rates rose. However, Trivariate Research has found that this relationship has evolved over time. Today, the correlation between a basket of high-quality growth stocks and inflation is zero, signaling a shift in the market dynamics.
Trivariate Research has identified a list of high-quality technology stocks with near-zero correlation to inflation. One standout company on their list is Keysight Technologies, an electronic equipment manufacturer. Despite a minor decline in share price this year, Keysight is considered a top pick by Morgan Stanley, with potential for growth in the coming years.
Another company in Trivariate’s basket is Procore Technologies, a provider of construction management software. JPMorgan has named Procore as one of its top picks, citing the company’s strong position in the construction-focused software market.
Cloud-computing stock Nutanix is also among Trivariate’s picks, with a 52% increase in share price this year. Raymond James believes there is further upside potential for Nutanix as it gains market share from competitors.
At Extreme Investor Network, we believe in providing our readers with valuable insights and recommendations to help them navigate the complexities of the market. Stay tuned for more expert analysis and investment opportunities to help you achieve your financial goals. Invest wisely and join our network for exclusive access to cutting-edge investing strategies.