Why higher rates are good for the world (and which stocks can do well)

November 23, 2023

In episode 23 of Stocks Neat, Co-Portfolio Manager Gareth Brown and CIO Steve Johnson discuss the opportunities available for investors in the current interest rate environment, following Steve’s CIO Letter, “Reasons to welcome the death of TINA”. TINA = “There is No Alternative” (to equities).

In October, yields on US Government 10-year bonds hit 4.98%, a level not seen since the mid-2000s. With rising yields has come weakness in equity markets as investors take advantage of risk-free returns. So does the death of TINA mean disaster for equity markets? You might certainly think so. Steve and the Forager team, however, feel far more comfortable with TINA in the ground.

Listen to the full episode to find out why.

“We are living in a world where capital has some element of scarcity to it, and people are making sensible decisions about where to allocate capital and what businesses get it.“

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Drink of choice:
Glen Scotia Whisky – Campbeltown, Scotland

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