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Nike, On Holding, and Deckers Outdoor shares have declined between 25% and 43% this year as the Federal Reserve raised its benchmark rate to a target range of 3.75% to 4%.
The central bank signaled it is prepared to maintain a tough stance on inflation, a move that pressures consumer names reliant on discretionary spending.
Within this trio, Nike is positioned as the most durable investment for allocators if the Fed continues to hike, according to analysis by Micah Zimmerman of The Motley Fool.
The rise in rates increases the discount rate applied to future earnings, which disproportionately affects companies dependent on aggressive growth assumptions.
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