Barron's - September 19, 2022

77 Pages·2022·19 MB·English

TOP 100 INDEPENDENT FINANCIAL ADVISORS • PULLOUT SECTION
VOL.CII NO.38 SEPTEMBER19,2022 $5.00
STREAMING’S
BLURRY FUTURE
m
o
c
s.
nt
epri As Netflix and Disney+ turn to ads,
djr
w. the battle for viewers heats up.
w
w The bull case for Disney, Warner Bros.
8 or Discovery, and Trade Desk.
d.00
e0
mitt43-
per0-8 PAGE18
ot 80
ctions nment at
duart
op
Reprs de
alter. eprint
ot edit or Barron's r
only. Do ne contact SNeqtufliidx Game
e as
se
cial unt, pl
mernte
o
mc
oe
cs
ersonal non-print or licen 63142 >
pe
or o r
FT
C O N T E N T S
09.19.22 VOL.CII NO.38
P.18 P.20 P.32
Streaming Services Worthy Alternatives to China Trader: This Bear Isn’t
Stake a Claim in Ads Ready to Hibernate
CoverStory:Potentialwinners EmergingmarketsBrazil,Indonesia,andIndiaaresettooutperformasChinaandthe It’stoosoontopounceonstocks.
andlosersasNetflix,Disney,and U.S.struggle.Hereareahandfulofstocksandfundstoconsider. ByRESHMAKAPADIA ByBENLEVISOHN
otherproviderslooktogenerate
moremoneyfromadvertising. P.35
TrackingthemainstockindexesforBrazil,India,Indonesia,andtheU.S.
ByJACKHOUGH Euro Trader: Ryanair
S&P500 JakartaComposite(Indonesia) Ibovespa(Brazil) NSENifty50(India)
Stock Could Soar 45%
P.7
20
Up&DownWallStreet: ByRUPERTSTEINER
Facing Rate Reality 15 P.35
Worseningpricetrendsprompt Emerging Markets:
callsforasupersizeFedratehike. 10
Putin’sFair-WeatherPal
Wheretofindhighreturns.
ByRANDALLW.FORSYTH 5 ByCRAIGMELLOW
P.11 P.36
0
Streetwise:BetterWays Striking Price: Lessons
to Generate Income -5 in Long-Term Investing
m Reluctancetoreturntotheoffice BySTEVENM.SEARS
s.co couldforceREITssuchasVornado -10
nt toslashpayouts.Plus,thelesson P.37
epri thatApplecanlearnfromDisney. -15 Commodities: Oil’s
djr ByJACKHOUGH
w. Pullback Makes Sense
w -20
w
or P.14 ByMYRAP.SAEFONG
8 A Golden Opportunity -25
d.00 P.58
mitte43-0 in Newmont Stock -30 An Alternate View of
per0-8 Tradingnearmultiyearlows,the Jan.2022 Sept. the Dollar’s Prospects
ot 80 miner’ssharescouldbethesafest
oductions npartment at wamBgyaeeyaNnntIeosCryboHoeuOutsoLg5n.Ae2taS%pgJaodAildidvStirIdoNeewvSniavdKiatyIl.—ielwdhile Note:DatathroughSept.15andinlocalcurrency. Source:Bloomberg OcBoytuhEledDrhWVasoAtieRcneDsth:PeTRhgIrCreeEeentbhainckgs’stehnadt.
Reprs de SPECIALPULLOUT
alter. eprint PA.n1o6ther Pivotal PW.2h3y This Mid-Cap PT.e2c8h Trader: Deal- TAodvpis1o0r0s aInnddeRpIeAnsdent
ot edit or Barron's r MMoommenteumntisfbourildCingrytopretgoulate FPruonfilde:SAmtiyllZLhainkgeosfATlgeercMhid MHowakAidnobge’sHbiidtsfoarFWigmaalalnd Hwheroe’csahnobwesttomseeleetcytoaunrandeveisdosr.
e only. Do nase contact tpBhlyaeyJceOrrysEpeLtvoIeGcnuHrwrTeenlccoymineditu.stry.Some PBGhaaomrrteoosni)’lsluDssottmarafftS;iol(ikSneqb/uAyildamy CasBtnayodpcDksFEscooBCcourBposeIwEsdodCulSdpAthrRbiikegLaehStafeOlnnieNd-rdsPolawiyknleoOciktyt.a OBPyr.a2EclR9e’IsCCJe.rSnAerVdITeaZldiffer. BoanrFroonx’sBRuosuinnedstsable
cial usnt, ple PU.-2H2aul Parent Amerco ©Inc2.0A2l2lRDiogwhtsJoRneesse&rvCedo.mpany, P.26 EoncoanFoemdyR: DatoenP’tivBoett WatchourweeklyTVshowSatur-
commerse conte TChoecuolmdpaMnyofliveesuUndper5W0al%l OfBruAormRnRseOuwNsst’Sapian(pUaebSrlPesSacre0er4t1i4f0i-e07d%00ms)iol(lsIuS.rSceNd THhaveeDaoRlleacroCrdouYledar ByLISABEILFUSS daw.amiyth.oEErTuS.ruTanshdiiaasGywraeoteu1k0p,’saan.Imainn.toBerrre1v1mi:e3mw0er.
or personal non-o reprint or licen SsstBoeetyreltfer-AaesatNtdt’ohseDrrraaiRavgtdiEeanaWbghr.uitBgBsrhiuuAnecteRrkbs-mYusrletulhnilstathiatpldilnaeen.vsedesrtvoerss 1MHt1CoaBh00dfhueoef70diraincc73nArddo-ee6emq8apsst.u0yt.eesPa.3PRerecrEi9,odcrthd)Mesia.ao,iPtrstnAdmCsou,gi:rhcbaNaei1iaanlsce2sislldtows1etha1poorpneYAe:toddBoheSvsaereP,eetkrrvMnaunr,eumgbdoANreelniay.c0Y’opisal.1if,an0t2iigdo20n0a0t B2QNen0yo&d2rRA2dt—ovE:iStCaghnuHoedrfMgrEnerAeonxeacKtnynhAbtreeaePxcaDApkteaD’tsrtoaItsAitJtsreseenepnssrgintmhoaincy. PIBBny.oc2LnoA5dWmsReEW:NSCohEroCth.rStBT-TRuAeyUriSnmSg IRMInnedsavieidlibxeeawSgc&oPorpeview PPPP....3451298 CWMSthaianartnrkisteeitnrticsgVsatiehnwedMLoasrekrestPPPP....43440129
FT
September19,2022 BARRON’S 3
Income strategies as
deep as our heritage
• Over 120 years as an income provider
• One of the largest municipal fund managers
• Expertise across municipal bonds, taxable fixed
income and real assets
m
o
c
s.
nt nuveen.com/income
pri
e
djr
w.
w
w
or
8
d.00
e0
mitt43-
per0-8
ot 80
ctions nment at
duart
op
Reprs de
alter. eprint
ot edit or Barron's r
only. Do ne contact
e as
se
cial unt, pl
mernte Pastperformancedoesnotguaranteefutureresults.Thismaterialisnotintendedtobearecommendationorinvestmentadvice,doesnotconstituteasolicitationtobuy,sellorholdasecurityoraninvestmentstrategy,andisnotprovidedinafiduciarycapacity.Theinformationprovideddoes
o
mc nottakeintoaccountthespecificobjectivesorcircumstancesofanyparticularinvestor,orsuggestanyspecificcourseofaction.Investmentdecisionsshouldbemadebasedonaninvestor’sobjectivesandcircumstancesandinconsultationwithhisorheradvisors.
oe
cs Beforeinvesting,carefullyconsiderfundinvestmentobjectives,risks,chargesandexpenses.Forthisandotherinformationthatshouldbereadcarefully,
ersonal non-print or licen NpulveeenaSseceuritriees,qLLuC,emesmtbearFINpRAroansdSpIPeC.ctusorsummaryprospectusfromyourfinancialprofessionalorNuveenat800.752.8700orvisitnuveen.com. 20854 GAD-1134692CR-W0420X
pe
or o r
FT
4 BARRON’S September19,2022
I N D E X
Ourindexlistssignificantcompaniesmentionedinstoriesandcolumns, ForCustomerService,call1(800)544-0422,orgoto
plusResearchReports,andCorrections&Amplifications.The customercenter.barrons.com.Forreprintsofarticles,
referencesaretothefirstpageoftheiteminwhichthecompanyis call1(800)843-0008,orgotodjreprints.com.
mentioned.
A AbbVie....................................11 Intel.......................................34 L Lennar....................................13 MPLX......................................8
Accenture..................................13 iRobot.....................................38 LifeStorage...............................22
AceHardwareIndonesia...................21 LTCProperties.............................8 N NCR......................................39
Adobe................................12,28,39 LVMHMoetHennessyLouisVuitton......12 Netflix.....................................18
AdvancedDrainageSystems...............38 J JPMorganChase.......................25,38 NewellBrands.............................33
AGNCInvestment..........................8 MMarathonDigitalHoldings.................16 Newmont..................................14
AkeroTherapeutics........................39 K KajariaCeramics..........................21 MasterCraftBoatHoldings................38 Nucor.....................................39
Alphabet...................................19 KeurigDrPepper.........................33
Amazon.com...............................38 Microsoft..................................28 O OberoiRealty..............................21
Amerco....................................22 MicroStrategy.............................39 OfficePropertiesIncomeTrust............11
AnnalyCapitalManagement................8
Apple...................................11,28 OmegaHealthcareInvestors................8
AresCapital................................8 Oracle.....................................28
AutomaticDataProcessing................24
AutoZone..................................13
Avalara....................................28
AvisBudgetGroup........................22 P PackagingCorp.ofAmerica...............39
ParamountGlobal..........................18
RupertMurdochExecutiveChairman,NewsCorp Petrobras..................................21
RobertThomsonCEO,NewsCorp AlmarLatourCEO,DowJones PhilipMorrisInternational.................11
B Ball........................................13 Phillips66.................................25
BancoBradesco............................21 SENIORVICEPRESIDENT,BARRON’SGROUPMaeM.Cheng PingIdentityHolding.....................28
BankofAmerica...........................25 ASSOCIATEPUBLISHER,BARRON’SGROUPDanShar PublicStorage.............................22
BankRakyatIndonesia....................21 MANAGINGEDITOR,BARRON’SGROUPDavePettit
BayerischeMotorenWerke................12
m BerkshireHathaway.......................22
o
prints.c BBBlPraacs.ki.ls.tB.o.on.le.s.aM..Bo.ar.lt.cg.a.ao.g..e....T..r..u..s..t..................................................23.518 EXECUTIVEEDITORBobERDoITseORSEINNCIOHRIEMFADNaAvGidINCGhEoDITORLaurenR.Rublin Q Qualcomm.................................13
w.djre EDIDTEOPRUIATLYDEDIRIETCOTROSRA,MleAxGEAuZleI,NBEenPhLielvRisooohsnevelt R RRaioytthBeloonckTchecahinn.o.lo.g..ie.s..........................................3164
ww C ChargePoint...............................39 MANAGINGEDITORSKristenBellstrom,MattBemer,DarenFonda,JoeWoelfel Roblox.....................................39
8 or CCiittiizgernosupF.in..a.n.c.i.a.l.G..r.o.u.p.......................................3181 ASSISTANTMANAGINGEDITORSHenryCutter,MelGray,AnitaHamilton,MaryRomano, RyanairHoldings..........................35
d.00 CoinbaseGlobal.........................16,38 RobertSabat,RupertSteiner(Londonbureauchief)
e0 Comcast...................................18
mitt43- CostcoWholesale..........................13 ASSOCIATEEDITORSAndrewBary,RandallW.Forsyth,JackHough,ReshmaKapadia,EricJ.Savitz S SabraHealthCareREIT...................8
oductions not perpartment at 800-8 D DCCCVoraotrSysdse.HA.n.em.Ra.elet.rhs.ict..aa..u..P.r..aa..rn..t.tn..s..e...r...s....................................................................................3313438 REPOSERSNTaIEbORArRiSnnWaJgaeERclsoaITcbPoEAabRladuESrem,llBiCmzbiaaloallbl,nAueT,tmlLehprueOKerisset’Ba,aoLrwRBiieseinvnal,ta,rMBsAae,naClilr,RfocMuonLsoensagt,oj,aoLrAniaeSvuC,miEraSeivstansihleeFz,lLmoJlaaisua,ctenoJ,arSb,,nLhNSeaaotiwicnHnhrea.oenCMlnsahchsieosiJh,nCaJkes.a,iiScnnKkts,rakDaJroiuie,sssnThhstamoNenaaK,tVCihmaaanr,nljJ-aeoKtneoaiLnziiEgsh,ntg,lish, SSSSSSShhipttaxaoleoeetrrlpchsweltif.rfSooC.yuor.tma.crd.p.ee..iPe.B.t..t.arr...olSa...p.n..p..e..d.e..r..sc..t..i.y.a.H....l.T.t.o..y...lr.d...u.L..i..sn...e.t.g..n....s..d.......i....n......g.................................................................................1.......3......,.33332.5839888
ot edit or alter. ReprBarron's reprints de F FFFFFeoeairrxdcsrtE.tSaE.xre.int...e..R..r...ge...s.y..e.....a....r....c....h........S....y.....s....t...e.....m.......s............................7....,.1.....2......,1....3.....,...3....2....,....3....6....,3111121398 SENIORAUDIOMACNOAPGYEDREMDSKSEeTtPMtOUeRiTLcYYühEtaDzeDhIlGIøJIT.IDfBOTtEAuRDArLSISliGMEnEIAdgDThNALITaALimnOGP,R,IRENROMrGiicDnaEhUtMDatCrPIcEdTeCRORtaeSRerrstsRhZcooiyongb,enSeSotrazt,caRCytouhObsmhezarointrlyTg,eNiteiclmkDanevor,ClareMcKeen T STTTTuoaaratbrnagduoleeclEatoDn..Re..e.ar.s.gs.k.a.ie...H.s......e....a......l.t....h.....C.......a....r....e...................................................................................................2331.58858
only. Do ne contact G GGeonldemraalnMSiallcsh.s.G..r.o.u.p............................................2135 DIRECTODRIROEFCPTHOORT,ADOREGSTRIADGPINRH&EYCVTSISOaUrRiAnSLaRSFoKibnrekirsettliCsntoeLninennoPzllHyD,ONETSiOcIkGENHDDIaTlIlORaEmRCS,TSHOuaRelNiCeghCehlasveeazS,cNhiicfofleSilver TTwwiiltitoer.........................................................................3192
se eas RESEARCHDIRECTORPaulineYuelys RESEARCHERDanLam U UnitedTractors...........................21
mercial uontent, pl H HHDerFcuCleBsaCnakp.i.ta..l......................................................2.18 [e-mail]@smzbkeasarrHoS.nTBsAa.TclomISmeTrI,CCWUIASaNTrdODSMa.ErMrRecSnGECuRhiVniImeCsasE800-544-0422 V VornadoRealtyTrust......................11
mc HighwoodsProperties.....................11
cose HomeDepot...............................25 GLOBALHEAD,WEALTH&ASSETMANAGEMENT JackOtter
ersonal non-print or licen HHourmmaenlaF.o.o.d..s...........................................................3369 York,N.Y.1003BHspo6uru.aebBbiranrsldaiopscrqnharruoi’erspatndtriw’isstoineinartrBehsrtsaoar:aerut1redr2tov:e1sneo1mp’snsAeaeticvrshyeikaesenlouarupfbirege,Djher$oomtc2fwtni2tstoh3oJste.oittoEhnoAnneema.tsaUicerpacenrpneisecldpoidactlisiiattca,sobintNrlaeeiaeafdrfdwlaimclvitaoeeYatnronecttrusiaesk.srne,dBctrN,ra’osci.Yprfoor.ttopshr1dni0isese’0shspr3o.(ouU6uOfb.lSwndlPiPlcybheSaierpcti0iauhoo4cbdna4cliriccco-eao7amal0ptsvip0yoapar)niionl(gaIosiShebfttSdaleaegNbdnfeyr1bao0psdyma7evD7iledtfo-h-r8waate0idtsAJ3deCod9rmhnve)ieeescPrnssouttep&ibssdeliihCneseagoh,nle.MlvD,cdeIiArnoleoecnavcp.sneteatodrintwyrudo,itM1ttme2hho1eaup1nrcsrdAcotmavenpyaepoe.inlttriEuanbpdengeoicotosroefetfratfopihiagcfreleoetah.AsdnAe.mudlRcaleaePedrddgvuicvuebianelrlasitrcwri,tsaiNhUseteioir.onSw'lnegs. WWWW.aaWlrtn.DeGrirsBanirenoygse..r.D...i.s..c..o..v...e..r..y.............................................1..1..,..1..2..,111838
or po re I IBM.......................................34 order.Postmaster:SendaddresschangestoBarron’s,200BurnettRd.,Chicopee,MA01020.
FT
September19,2022 BARRON’S 5
JamesFields
KlingensteinFieldsAdvisors
Independentsince1989
“Move to
independence
,
and you gain
real control of
m
o your business.”
c
s.
nt
pri
e
djr
w.
w
w
or
8
d.00
e0
mitt43-
per0-8 You make the move to the RIA model, and you get to keep more of
ductions not artment at 80 wwbehhlaaiettvymeoauistetreaigrrshn–t.Ifyto’osrutyrhocaultirescnimltiespnaletns.d.AFynrodoumyropdueagoyepotlento.edyoouitwinilalbweaiyntvheasttiynoguin
op
Reprs de Scantodownloadournewwhitepaper
alter. eprint orgotoadvisorservices.schwab.com/move
ot edit or Barron's r
only. Do ne contact
e as
se
cial unt, pl
mernte
o KlingensteinFieldsAdvisorsisnotownedby,supervisedby,oraffiliatedwithSchwab,anditspersonnelarenotemployeesoragentsofSchwab.
mc
oe Thisisnotareferralto,endorsementof,ortestimonialfortheadvisorwithrespecttoitsinvestmentadvisoryorotherservices.
cs
ersonal non-print or licen ©Sc2h0w2a2bSAcdhwviasobrASdevrisvoicreSse™rvsiceervse™.sAinlldreigphetnsdreensetrivnevde.sMtmeemnbteardSvIiPsCor.s(0a3n2d2-in2cBlZuPd)esthecustody,trading,andsupportservicesofSchwab.
pe
or o r
FT
6 BARRON’S September19,2022
HELP YOUR
CLIENTS KEEP
THEIR FAIR
SHARE.
Analyze pending capital gains distributions and
identify tax loss harvesting opportunities with
the BlackRock Tax Evaluator.
m
o
c
s.
nt
pri
e
djr
w.
w
w
or
8
d.00
e0
mitt43-
per0-8
ot 80
ctions nment at
duart
op
Reprs de Get your share of progress.
alter. eprint
ot edit or Barron's r
only. Do ne contact
e as
se
cial unt, pl
meronte Investinginvolvesrisk,includingpossiblelossofprincipal. Noproprietarytechnologyorassetallocationmodelisaguaranteeagainstlossof
mc
oe principal.Therecanbenoassurancethataninvestmentstrategybasedonthetoolswillbesuccessful.PreparedbyBlackRockInvestments,LLC,memberFINRA.
cs
ersonal non-print or licen ©Al2lo0t2h2erBmlaacrkkRsoacrek,tIhnec.pArollpreigrhtytsorfetsheerivrerdes.piSeHctAivReEoSwannedrsB.iLCARCMKHR0O7C2K2Uar/eSt-r2a2d9em19ar1k4sofBlackRock,Inc.,oritssubsidiariesintheUnitedStatesandelsewhere.
pe
or o r
FT
September19,2022 BARRON’S 7
U P & D O W N W A L L S T R E E T
ThefuturesmarketnolongerlooksfortheFedto
cutratesnextyear,whichwasunderlinedbythe
bondmarket’slackofreactiontotheFedExnews.
Bulls Get Scorched by
theCMEFedWatchwebsite,inline rateincrease.Inotherwords,westill
withthepredictioninaWallStreet havemoneyfornothingand—with
Journalstoryearlierintheweek.That apologiestoDireStraits—bipsfor
FedEx. Don’t Expect stillleftan18%chanceofafullper- free(tousethemarket’sslangfor
centage-pointjump. basispoints).
Notwithstandingthebigger-than- SincewhattheFederalOpenMarket
expectedCPIrise,somecomplaints Committeewillactuallydoisnearly
The Fed to Help. wereheardthattheFederalReserve certain,themainfocuswillbeonits
isoverdoingthetightening.Accord- newSummaryofEconomicProjec-
ingtothebleatingbysomecritics— tionsand,asusual,FederalReserve
mainlythosewhohadpreviously ChairmanJeromePowell’spostmeeting
feastedoncheapmoneyfromthe pressconference.
centralbank—thecentralbankis Thisconfabwillproducethefirst
T
reactingtoalaggingindicatorby newsetofeconomicprojections
payingheedtoinflation. sincetheJuneFOMCmeeting,which
hestockmarket jumpedfollowingTuesday’sconsumer- Pushbacktothatnotioncomes continuedtoportrayanoptimistic
facesadoublypoi- price-indexreport.Inparticular,the fromJohnRydingandConradDe- outlook.
sonouscocktail: keytwo-yearnote’syieldwasup30 Quadros,economicadvisorsatBrean Inthatreport,inflationwasseen
signsofslowing basispoints,to3.871%onFriday,its Capital,whoarguedlastyearthat comingdowntowardthe2%neigh-
economicgrowth highestlevelsinceOct.31,2007. inflationwouldn’tbetransitory,as borhood—theFed’slong-termgoal
whilecentral Asexpected,thesteepdeclinein theFedthenwasinsisting.Theycon- forthepersonalconsumptiondefla-
banksattemptto retailgasolinepricestampeddown tendthatmonetarypolicyisstillfar tor—whileunemploymentwasex-
m
reinininflationthat,unlikethepan- theoverallmonthlyCPIheadline fromrestrictive,eventhoughinfla- pectedtoonlyedgeupfromthelow
o
c
s. demic,hasn’tsubsidedmeaningfully. gainto0.1%.But“coreCPI,”which tionisbecomingmorebroad-based. 3.7%mostrecentlytallied,andeco-
eprint twiTnhperpeisnscuerressqcuameeezeinftroomshtahropsfeocus BFoyrRsyatnhdallW. eaxtcalu0d.6e%sfcoloipd—antwdiecneetrhgeyfocorestcsa,srtose tarIgfetthbeyF7e5dbraasisisespothinetfsetdh-fisuncodmsing ninomariocugnrdoworthslwigahstlpyrboejeloctwedittsoloconmg-e
w.djr thispastweekafteramuchworse increase. week,thekeypolicyratewouldre- termtrend.Backinthe1980s,such
w thanexpectedreadingonretailinfla- Theunexpectedworseninginprice mainlowerinrealtermsthanatany benignforecastsweresaidtobepro-
w
or tionfromAugust,whichwasfol- trendspromptedsomecallsforasu- timefrom1954to2021,theywritein ducedbyagovernmenteconomist
8 lowedbyFedEx(ticker:FDX)stun- per-sized100-basis-pointhikeinthe aclientnote.Thatreflectsthewide namedRosyScenario.
ed.000 ningthefinancialworldaheadof federal-fundstargetratethiscoming gapbetweenthe8.3%yearlyCPIrise TheFOMC’sexpectation(don’t
mitt43- Friday’ssessionwithdisappointing week.ByFriday,thefed-fundsfutures andthecurrent2.25%to2.5%fed- callitaforecast)forfedfundsmight
per0-8 resultsandwithdrawingitsearnings marketwasputtingan82%probability fundsrate,andalikelynewrangeof betakenmoreseriously,giventhat
ot 80 guidanceoversignsofslowingglobal ofa75-basis-pointmove,accordingto 3%to3.25%afterthisweek’slikely thetargetrateisunderthepanel’s
ductions nartment at bnualsTifhnoelelsobswi.gesdhsipimpeilra’srwcaeuatkionneasrsyinsig- ctthhoienst3ry.o4el%a.rTiihnsecJueprnrtoeaj.iencttioobneforaritsheedefnrodmof
op anothereconomicallysensitivesec- AsofFriday,Decemberfed-funds
Reprs de tor,asindicatedbyasteepdropin futuresweresplitbetweena4%-
alter. eprint tehxechManagteer-tiraaldseSdefluenctdS(XecLtBo)r.S(SPeDeR teon-d4.r2a5n%gea.nTdhaat4w.2o5u%ld-toim-4p.5ly%anyeoathr-er
ot edit or Barron's r tghoerAyTsdreaeqdtuaeiirltsice.o)slsulmidnononthpeaFgeed3E2xfonrewthse 7Fa5O2-5bM-aCosrisg5-ap0toh-pienortiinnhgtik,hfeiokaleltotiwnheeDdNebcoyevm.e1ib-t2here.r
only. Do ne contact Fvdeurrirdbianiaygl,ptdhroeegvbtiohonuatdsdsmitdoancrk’ktesbtwawrokao.snUtsh,neTlirpkeerao-- jfeuctPtuieorrenhssamfpoasrrm2k0eot2rn3eotaenllodlinnbggeeyrwolionllodbk.esTpfhorero-
e as surysecuritiesfailedtocatchabid theFedtocutratesnextyear,anex-
cial usnt, ple fsreollminginsvteosrtmor.sBsoenedksinegvaidheanvtleynairnethe pmeacrtkaetito’snlaucnkdoerflrineaecdtiboyntthoetbhoend
commerse conte oombergb7th5rea-bccaeodsniscfo-luprsotihionentiiomnftpteharceetsFto-efrdaaetnreoaitlnhOcerpreebansige,at FdeisdaEpxp’sointing Frtoeend4tE.l5yx%pe,oatironntbinteoghsaitnpbeewyaksF.erFbaurnutguaerroeyfsa4cn.u2dr5-t%o
or personal non-o reprint or licen DavidPaulMorris/BlMWoshfaeaaTrdropkpneelbeytrsecChdesioanugymtrh.aee(mg,AreTiotrpbtneeaoaetsishn’isusettr.p)wwyooeyine-idektla,diyshsa1mw/v1iee0nerg0teinthg euwwissnwtaneeotreoarchnxeokkiipsnnkegmg.pecusaaytidersafkatdnaenldwcytcteoeersk’s ldtaihtoneiuIgssnbe’prflaaeotsuwhtthnriweoddueeecelrguykhrR,rrJaeeBuyanrldtyiDd.tLaagTlirehingwoakewtaet’tsdrreaIaornnbtAegopesutoh.stsoatctia-
FT
8 BARRON’S September19,2022
Up&DownWallStreet(continued)
Re-Charge
4.5%fed-fundsratecouldmeana20% relativelylesssensitivetohigherrates
dropinequityprices.ButtoachieveJe- thanmostofthebreed.
romePowell&Co.’santi-inflationgoal, Nursing-homeREITswerehammered
DeutscheBankeconomistssuggest,arate duringthepandemic,butshouldnow
near5%mightbeneeded. enjoyatailwindasoccupancyrises,he
Your Portfolio Noneofwhichsoundsauspiciousfor argues.NameshecitesincludeOmega
thebulls. HealthcareInvestors(OHI),Sabra
I HealthCareREIT(SBRA),andLTC
nterestrateshavefurthertorise Properties(LTC).
amidpersistentinflation,whilethe Healsofavorscommercialmortgage
labormarketremainstoostrongfor REITs,includingStarwoodProperty
itsowngood.SosaysCharlesLieber- Trust(STWD)andBlackstoneMortgage
man,formerchiefeconomistforoneof Trust(BXMT),withyieldsinthe8%
themajorNewYorkbanksthateventu- range.That’slessthanthedouble-digit
allywasswallowedupbyJPMorgan yieldsfoundonmorefamiliarresidential
Chase.Ofevengreaterinteresttomost mortgageREITs,butcommercialmort-
Lithium &
Barron’sreadersiswhatinvestmentplays gageshavesignificantlylowerriskfrom
Liebermanfavorsinhispresentcapacity risinginterestrates,Liebermanexplains.
Battery Tech ETF
aschiefinvestmentofficerofAdvisors (FormoreonREITs,seeStreetwiseon
CapitalManagement. page11.)
LIT
Thebenchmark10-yearTreasury LessriskyformREITfansarethese
note’syieldof3.45%simplyisunsustain- entities’preferredstocks,specificallythose
ablylowwiththeFederalReserveon withcurrentlyfixeddividendsthatconvert
tracktoliftitsfederal-fundstargetrateto atafuturedatetofloatingpayoutsata
around4%-4.50%,Liebermanopinedby largespreadaboveshort-terminterest
telephonethispastweek.Afurtherrise rates.HispicksareAGNCInvestment,
m inbondyieldswouldtranslateintoade- seriesE(AGNCO),andAnnalyCapital
o
s.c clineintheirprices,worseningthenega- Management,seriesI(NLYPfdI).Their
nt tivereturnsthatfixed-incomeinvestors currentyieldsareinthe7%range,which
epri havesufferedthisyear. iswellbelowwhat’sofferedontheirrisk-
djr Onesolutionistostickwithshort- iercommonshares.
w.
w termmoney-marketinstruments,suchas Thesepreferredsmayconverttoa
w 1 [phone]
or Treasurybills,asourcolleagueAndrew floatingdividendratein2024ataspread
8 GLOBALXETFS.COM BarywritesonBarrons.comandaserst- nearly5%aboveashort-termratebench-
d.00 whilebondkingBillGrosssaidacouple mark.Thatis,unlessthey’recalledat
e0
mitt43- ofmonthsago. their$25parvalue.Soinvestorsshould
per0-8 One-yearbillstradedatmorethana seeeitherastep-upinyieldstothe8%
ot 80 4%bond-equivalentrateThursday,put- range(basedonexpectedfutureyields
Reproductions ns department at BIicnnuvvreeeressnttymicnygeovniantslvnuomelsvad,eyfsrionrmiOvsokdl,viirffenecrdrilsuekndicionnefgsctaianhpegitrepanloyelsorssaibslEllyferaoTlcomcseFsupnotsffeadp®vroainrcaccbioplueanl.fltiIunncgtteuprarnitaniotciniopnlienasl, etywiqinieudHgldietitlyghcyhuevwemrarvaluetapcatrahtotniehosddpenaetspwbceatoaoirvvke-eeyeoetbxfahoprtenhenydneoiseTytielvirde.eel,aodLsnsuimetrhbyeeearn-s ppvcaearllipFlocseeipnrdbmaiaislennlnyckt,aotsLlclEweioeudmibtr,heoparodamcunoatliaplednaisrte,lapifolkuorgetsBasuitiDrbsne.uC.sTs)sih,onewre,ssheisfilctdehhnee-dhe
alter. eprint oinrvforolvmeheeciognhotemnicedorripskoslitriecalaltiendsttaobtilhiteysinamotehfearcntoartsioanss.wEemllearsgiinngcrmeaasrekdets mnaamnecso—nitfinthueeys.hHaovweeevaernr,inwghsilaetmalal—nystill taothgeenfteyrainlltyersemstarllaetresc.ompanies,typically
ot edit or Barron's r vsinuoblliatjethicliiuttymtoaahnnidgdhlotehwreevloritlthartiauildimtiyn.mgTihvnoeinlruegmainered.uNasdatdrrryiot.iwoLnIlTyalifsoricnsukossne-addsisvinoevcreisaistfiteemddew.nittshminavyesbteing cpinolecmlsu,mdhaeenssdheeassrtreaestlocohfteqodufacplhritiecyaepc/eosamtropncaiknnsg.iesTsmhtoruasledti-- amcatTunhaalegleykmegyeetnisrtettphoaemikdae,kywechgrioictohedrmilooanak.neHssitBshDsaetClec-
cial use only. Do nnt, please contact apCfadraocdrtseiotpifroeusncl,ltayuclhscin,aofwornghrsmeiicdsahetariaonrtnehdceaeavFxnaupbilneaednbf’solseeuisanntdvbgeienlsoftotbmhraeeelxFnienuttnvfosdeb.’cssjotefimucnltg.livoR.ereTssahu,dismritashmkneadry ibatpnooamrgrnT,teadnhnatoaeasltrtlueatssnrebhsearliynttpouhasfarat.iainnnHvlufle1eylsm0arltewbeitoiaheimtndrehseopphsftrioicopmgkttrheahsoecsefMrttiieteoysPrnn,iLeela.ilrXmndgdsyitaesndecd- t(aLinAiloeoRtnAnnhsCdgse:Cinwi9nn)o%gidattehun(rdTsdaStSinnriHLxgytXetehlh.re)e,caSfwuditrelrhesreitsscephACtaSaarrtlpeplosiestfcpCatiohlaari(plstHtiyyctToaieGlluldCms),n,
mernte prospectuscarefullybefore investing. (ticker:MPLX),amidstreamplay,and thestockandbondmarketsfacethepros-
mco Sunoco(SUN),adistributorofmotor pectoftheFeddoublingitscurrentfed-
cose SharesofETFsareboughtandsoldatmarketprice(notNAV) fuels,bothofwhichsportdividendyields fundstargetrangeof2.25%-2.50%byearly
ersonal non-print or licen acDonismdtmraibirseustinoioontnsinwCdiolilv.riedduuaclleyrreetduernesm.eDdisftrroibmutethdebFyuSnEdI.IBnvroekstemraegnets oifucvaeeLlrPire8aeb%treatr.inlmAeeranrnysoit(aehClledsAroiPnfnagLav)omo,vraeeistsrema1:0Cafe%lrlweo.rsrmseaaomlteoesrrt-a-te ntinaekvxeitnsytgoeorasnr.noFouiwntsdifizanecger.ihsiBkgshirsetthuerndsauwnittihnoguttask
pe
or o r investmenttruststhatheseesasbeing email:[email protected]
FT
September19,2022 BARRON’S 9
m
o
c
s.
nt
pri
e
djr
w.
w
w
or
8
d.00
e0
mitt43-
per0-8
ot 80
ctions nment at
duart
op
Reprs de
alter. eprint
ot edit or Barron's r
only. Do ne contact
e as
se
cial unt, pl
mernte
o
mc
oe
cs
ersonal non-print or licen
pe
or o r
FT
10 BARRON’S September19,2022
m
o
c
s.
nt
pri You don’t need to
e
djr
w.
w
w be a helioseismologist
or
8
d.00
mitte43-0 to help harness the
per0-8
ot 80 power of the sun.
ctions nment at
duart
op
Reprs de Help power your portfolio
alter. eprint with the innovators of the Nasdaq-100.
ot edit or Barron's r
only. Do ne contact
e as
se
cial unt, pl NThOeTrFeDaIrCeIrNiSskUsRiEnDvo|lMveAdYwLOitShEinVvAeLsUtiEng|NinOEBTAFNs,KinGcUluAdRinAgNTpEoEssiblelossofmoney.ETFsaresubjecttoriskssimilartothoseofstocks.Investmentsfocusedinaparticular
mernte sector,suchastechnology,aresubjecttogreaterrisk,andaremoregreatlyimpactedbymarketvolatility,thanmorediversifiedinvestments.
o
ome c TheNasdaq-100Indexcomprisesthe100largestnon-financialcompaniestradedontheNasdaq.Aninvestmentcannotbemadedirectlyintoanindex.
cs
ersonal non-print or licen iBInnveevscfeoosDricsetorib.iucntoovrsm,eInsc/.tfiunngd,pcroonsspiedcetrutshfeorFaunpdro’sspinevcetustsmcoennttaoinbijnegcttihviessi,nrfiosrkms,actihoanr.gReesaadnidtceaxrpeefunlslyesb.eVfoisreitinvesting.
pe
or o r
FT