For investors that are interested in yield, I published an analysis of Enterprise Products Partners LP on Seeking Alpha.
Enterprise Products Partners LP (NYSE: EPD) is a blue-chip midstream partnership that offers investors one of the better combinations of yield, growth, and safety available in today’s expensive markets.
- Read the full article here.
One of the themes in the article is that certain investments, like Master Limited Partnerships and Real Estate Investment Trusts, do very well in low interest rate environments. They are very asset-heavy, and require a lot of leverage, and low interest rates helps keep their cost of capital low.
On the other hand, banks and insurance companies generally do well in higher interest rate environments. Banks can generate a bigger margin between their borrowing and lending rates, while insurance companies get better returns on their bond-heavy portfolios.
If you want to make your portfolio as agnostic as possible towards interest rates and remain diversified, it’s smart to pair asset-heavy businesses with financials.
See Also: How to Invest in Stocks