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16 handpicked stocks

Profiting From The Fed's Firm Stance

The Federal Reserve has held interest rates steady, with Chair Jerome Powell pushing back on expectations for a near-term cut. This creates an investment opportunity in companies that can thrive in a sustained high-interest-rate environment due to strong balance sheets and pricing power.

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Author avatar

Han Tan | Market Analyst

Updated 1 day ago | Published at juillet 31

Top Picks from This Group

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

OCCI

OFS Credit Company Inc

OCCI

Current price

$6.55

RWAY

RUNWAY GROWTH FINANCE CORP.

RWAY

Current price

$9.24

IX

ORIX Corporation

IX

Current price

$25.99

About This Group of Stocks

1

Our Expert Thinking

The Federal Reserve's decision to hold rates steady signals a 'higher-for-longer' environment. This creates opportunities for companies with financial resilience - those equipped to navigate elevated borrowing costs whilst maintaining strong margins and consistent cash flow generation.

2

What You Need to Know

This group focuses on businesses with strong balance sheets, low leverage, and significant pricing power. These characteristics allow companies to manage higher borrowing costs effectively and pass expenses on to customers, supporting stability in challenging monetary conditions.

3

Why These Stocks

Each company has been specifically selected for fundamental strengths that align with the Fed's current policy stance. Professional analysts identified businesses positioned to potentially outperform whilst the broader market adjusts to persistent monetary tightness.

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

+37.45%

Group Performance Snapshot

37.45%

Average 12 Month Profit

On average, analysts expect assets in this group to grow 37.45% over the next year.

8 of 16

Stocks Rated Buy by Analysts

8 of 16 assets in this group are rated Buy by professional analysts.

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

🎯

Fed Policy Winners

These companies are specifically positioned to benefit from the Fed's higher-for-longer stance. Whilst others struggle with borrowing costs, these businesses have the financial strength to thrive.

💪

Pricing Power Advantage

When costs rise, these companies can pass them on to customers thanks to strong market positions. This pricing flexibility helps protect margins in challenging economic conditions.

🔒

Balance Sheet Strength

Low debt levels and robust cash flows mean these businesses aren't vulnerable to higher interest rates. They're built to weather monetary tightness whilst competitors may struggle.

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