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15 handpicked stocks

Investing In The Fed's High-Rate Hold

The Federal Reserve has decided to maintain its current interest rate, signaling a period of caution amidst economic uncertainty and political pressure. This environment favors investment in financially resilient companies that are not heavily reliant on borrowing and can navigate a stable but uncertain rate landscape.

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Author avatar

Han Tan | Market Analyst

Updated today | Published at July 31

Top Picks from This Group

Here are a few of the assets in this group. Create an account to unlock the full list.

GNW

Genworth Financial, Inc.

GNW

Current price

$8.33

SYF

Synchrony Financial

SYF

Current price

$71.49

EFC

Ellington Financial LLC

EFC

Current price

$13.75

About This Group of Stocks

1

Our Expert Thinking

The Federal Reserve's decision to hold rates steady at 4.25%-4.5% for five consecutive meetings creates a unique investment landscape. This prolonged period of elevated rates favours companies with strong balance sheets and predictable cash flows that aren't dependent on cheap credit to fuel their growth.

2

What You Need to Know

This collection focuses on financially robust businesses, particularly in financial services and business development sectors. These companies typically generate steady cash flows and may actually benefit from higher lending rates, making them well-positioned to navigate economic uncertainty.

3

Why These Stocks

Each stock was handpicked by professional analysts for its resilience in high-rate environments. These companies possess strong fundamentals and low debt dependence, making them tactical choices for investors seeking defensive positioning during monetary policy uncertainty.

12 Month Growth Potential

Use the growth calculator to see how much investing in these assets could return over one year.

If you invested across these assets:

in 12 months it could be worth:

$1,000.00

+17.01%

Group Performance Snapshot

17.01%

Average 12 Month Profit

On average, analysts expect assets in this group to grow 17.01% over the next year.

8 of 15

Stocks Rated Buy by Analysts

8 of 15 assets in this group are rated Buy by professional analysts.

1.2%

Group Growth

This group averaged a 1.2% return last month.

Source: Analyst sentiment is provided by Refinitiv Ltd, a global leader in financial market data with over 40k business clients. Refinitiv Ltd is an independent third party to Nemo. This is not advice.

Why You'll Want to Watch These Stocks

🏦

Rate Winners in Disguise

While most companies struggle with high rates, these financial firms actually benefit from higher lending spreads. They're positioned to profit when borrowing costs stay elevated.

🛡️

Built for Uncertainty

These companies have weathered economic storms before with their strong balance sheets and steady cash flows. They're designed to thrive when others merely survive.

💰

Dividend Powerhouses

Many of these stocks offer attractive dividend yields, providing income whilst you wait for capital appreciation. It's like getting paid to be patient during volatile times.

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