HLAL: Profit From The Yield Curve Inversion

Radar Insights
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Summary

  • Despite a yield curve inversion, there is no recession and equities are performing well.
  • Rising interest rates haven't led to increased interest payments for cash-rich companies.
  • The Wahed FTSE USA Shariah ETF is overweight in sectors with cash-rich companies, making it a good investment opportunity.

Quality

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When somebody mentions “yield curve inversion” almost everybody responds in a Pavlovian way with “recession”! And given the bad performance of equities in (some of the) previous recessions, the conclusion is often: “sell your equities”. But despite the fact we have a yield curve

This article was written by

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Hi, I’m a private investor and a teacher. I like to program and the stock markets are a fertile playground for data analysis and visualisation and this helps me take well-informed decisions.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in HLAL over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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