It seems there’s nowhere to run or hide from the scourge of higher interest rates.
The US Federal Reserve has raised its benchmark rate sharply last year as it battles four-decade-high inflation.
Back home, the cost of borrowing has shot up in tandem.
Mortgage loans offered by the three local banks now hover around 3.5% to over 4%, a sharp rise compared with the 1+% offered by DBS Group (SGX: D05) in late 2021.
Investors not only face higher rates on their mortgages but are also seeing a negative impact on the REIT sector and non-REIT companies with significant debt on their balance sheets.
There’s good news, though.
If you’re seeking shelter from the interest rate storm, you can park your money in companies with low or no debt that generate copious amounts of free cash flow.
Here are four such stocks that could make it to your buy watchlist.
VICOM Limited (SGX: WJP)
VICOM...