Whirlpool CEO Discusses Impact of Fed Rates on the Appliance Business
Feb 27, 2024
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Whirlpool CEO discusses impact of Fed rates on the appliance business. Apple cancels electric car project for generative AI. Debt-addicted companies seek equity amidst rising interest costs. Insights on navigating market volatility and interest rates.
Interest rate changes impact portfolios, focus on long-term growth.
Promote global investments to diversify and explore growth opportunities abroad.
Deep dives
Client Focus on US Tech Giants and Interest Rates' Impact on Portfolio Positioning
Clients are interested in US tech giants like the 'magnificent seven' and Nvidia, wondering if these companies should remain a key focus. They are inquiring about potential opportunities beyond these companies, considering sectors, industries, and global markets. Discussions are centered around the impact of interest rate changes on portfolios, particularly focusing on positioning portfolios for long-term growth and advantage in industries like financial services benefitting from lowered rates.
Expanding Portfolios Abroad for Diversification
Encouraging clients to look beyond the US market, advisors are promoting investments abroad to diversify portfolios and reduce the heavy bias towards US-based companies. Emphasis is placed on seeking opportunities globally, exploring blue-chip companies outside the US that offer robust revenue and growth potential.
Separating Country Economy from Investment Opportunities: Example of Japan
Advisors stress the importance of distinguishing a country's economy and political environment from investment prospects within that country. For example, despite Japan's economic challenges such as aging population and inflation, clients are urged to consider specific Japanese companies that offer investment growth potential, leveraging opportunities in sectors like automotive manufacturing.
Focus on Company Revenue Attribution and Global Business Dynamics
Discussing the significance of where a company's revenue is generated, highlighting how global business dynamics play a role in revenue attribution. Examples include Japanese car manufacturers with revenue originating from various markets, leading to considerations on where the revenue contributes to company performance and industry index representation.
Watch Carol and Tim LIVE every day on YouTube: http://bit.ly/3vTiACF. Whirlpool Corp. CEO Marc Bitzer discusses news from the company’s investor day and how mortgage rates are impacting the appliance maker. Bloomberg News Chief Technology Correspondent Mark Gurman breaks news that Apple is canceling a decade-long effort to build an electric car abandoning one of the most ambitious projects in the history of the company. Bloomberg News Equities Reporter Bailey Lipschultz explains how debt-addicted companies are seeking equity as interest costs skyrocket. And we Drive to the Close with Adrianne Yamaki, Founder & Financial Advisor at Strategic Wealth Capital. Hosts: Carol Massar and Tim Stenovec. Producer: Paul Brennan.