What are some ways investors should change their strategies with rising interest rates?
A balanced portfolio, and one meant to withstand rising interest rates, includes investment in companies with pricing power. Look for companies that have strong market position and few competitors — they can raise prices as needed. An example is an MLP (Master Limited Partnership) pipeline, which basically moves oil from the well to distribution centers. Avoid expensive growth stocks, especially those without profits, and avoid longer-dated fixed income.
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