Piper Sandler lays out a contrarian bet on the US consumer, and flags 13 stocks to play the trade
ANGELA WEISS / AFP via Getty Images Piper Sandler suggests investing in consumer stocks as a contrarian bet on the direction of interest rates. Elevated 10-year Treasury yields could weaken growth, lowering rates and boosting consumer stocks. The bank shared a list of 13 stocks with Business Insider to play the trade. All eyes are on the surge in AI stocks lately, but it might be a good time to make a contrarian bet on the consumer sector, Piper Sandler says. That's because long-term interest rates could be set to decline in the near-term, Michael Kantrowitz, the bank's chief strategist, said in a note on Tuesday. Yields on 10-year Treasurys have risen from 3.96% in February to 4.47% as of Wednesday afternoon. Eventually, high yields start to weigh on consumers and slow economic growth, which can pave the way for lower interest rates, the firm said. Falling rates then help stimulate consumer activity. Despite a hot consumer inflation report on Tuesday , Kantrowitz said we cou...
