top of page

What stocks are pricing for rates: an update

Writer's picture: Joseph MezrichJoseph Mezrich

In previous articles, I've highlighted the strong correlation between the direction of bond yields and the return to Free Cash Flow yield (FCF yield - Free Cash Flow per share divided by current share price). This correlation is because value stocks, with their shorter-duration cash flows, are more resilient to increasing rates than growth stocks with longer-duration cash flows. This post is an update about what stocks appear to be pricing for the direction of interest rates.

Want to read more?

Subscribe to metafoura.com to keep reading this exclusive post.

13 views0 comments

Recent Posts

See All
bottom of page