3 Tech Stocks That Don't Care About Interest Rates
In recent weeks, rising interest rates have made bond yields more attractive, sparking a sell-off that hit the tech sector especially hard. While the tech-heavy Nasdaq Composite Index is down just 6% from its all-time high, many individual tech stocks have fallen much more.
Of course, this is nothing out of the ordinary. Bond yields represent a guaranteed rate of return, and as those rates tick higher, investors are more likely to buy risk-free U.S. Treasuries or other fixed-income securities. However, that doesn't mean you should abandon the stock market -- especially if you still have a decade or two before retirement. Stocks typically outperform bonds over long periods of time.
With that in mind, we asked three Motley Fool contributors to pick tech stocks that should generate solid returns in both high and low-interest-rate environments. Keep reading to see why Lemonade (NYSE: LMND), Netflix (NASDAQ: NFLX), and Take-Two Interactive (NASDAQ: TTWO) made the list.
Source Fool.com
