Rising Rates, Smarter Picks | Durham News

Rising long-term bond yields are a major market risk, according to portfolio manager Justin Burgener, who warns they could strain government budgets, slow consumer spending, and inflate AI investment costs. While staying cautious amid pricey markets, he’s not abandoning stocks—instead, he’s hunting for resilient companies that can grow even in tough times, especially when their prices dip 10% below the broader market. He’s shifting away from traditional dividend plays like staples and healthcare, as higher yields make bonds more attractive for income. Instead, he favors firms with strong operations, such as Ferguson Enterprises (benefiting from homebuilding and data centers) and Smucker’s (powered by brand strength and sales growth). His strategy: identify solid businesses and buy when they’re temporarily undervalued, ignoring Fed timing and focusing on how sustained borrowing costs reshape valuations and financing conditions.

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This is an automated, high-level news summary based on public reporting.
Sources:
https://www.heraldsun.com/news/business/article317244551.html#storylink=partnerdigest_the

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