4 Industries Resilient to Rising Interest Rates | Stock Prices Move First, It's Too Late Once It's a Hot Topic [Audio Delivery]
Today is the second installment of “Industries that profit when interest rates rise.” Following the banks from the other day, I have picked out four: insurance, securities, trading companies, and companies without debt.
Insurance companies profit from the difference between the maturity benefits decided at the time of contract and the investment yield. Even if interest rates rise, your basic maturity benefits do not increase. Securities companies profit from interest on margin trading. Margin trading is debt, so if interest rates rise, the interest on what has already been borrowed also increases. Trading companies are said to be strong in a world with interest rates due to high resource prices, and companies without debt are strong because the interest they pay does not increase.
However, I am not going to buy stocks right now. It is because everyone already knows, and stock prices move ahead of the economy. If you are going to buy individual stocks with the intention of holding them for a long time, it should not be when that industry is a hot topic, but when everyone has stopped looking at it. Buying a wonderful company at a decent price. This is the basis of long-term investment.
Usually, I just steadily accumulate All Country or S&P 500, regardless of whether it is high or low, without predicting. Investment is passive, business is active, and gambling is negative. Things are two sides of the same coin. Please invest at your own risk. Take care today, and have a great day.
[Self-Introduction]
I am Hanatsubure Pagu-o (Pagu-o). I have spent 18 years in financial institutions, 15 of which were in insurance sales. Triggered by the 20 million yen retirement problem in 2019, I started studying things other than insurance, met President Ryo and LibeCity, continued to reduce fixed costs and accumulate in global stock indices, and semi-retired at 40. Now, while living a semi-retired life with my wife, I deliver daily talks on familiar money topics that financial institutions and people around me don’t tell me, with the desire that “as many people as possible can live a life without money worries.” There are no sponsored posts, PR, or paid memberships. That’s why I can say it clearly.
※Pagu-o is a LibeCity supporting member. The origin of my asset formation was learned from the philosophy of President Ryo (Liberal Arts University).
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