The S&P/ASX 200 Index (ASX: XJO) has fallen in the year, but experts have tipped three shares that could rise in a high-interest rate environment.
The benchmark ASX 200 index has lost nearly 9% in the year to date and more than 8% over the past 12-months.
So let's take a look at three ASX 200 shares the experts recommend right now.
What shares are worth investing in?
According to some analysts, shares in CSL Ltd (ASX: CSL), QBE Insurance Group Ltd (ASX: QBE) and Transurban Group (ASX: TCL) could be worth considering.
QBE shares leapt 1.14% on Monday, while Transurban shares were up 1.64% at the close and CSL shares fell 0.84%.
Analysts have named multiple shares that could climb despite higher interest rates, with Investors Mutual senior portfolio manager Hugh Giddy saying in a livewire interview that CSL "might do really well".
Giddy said that CSL was "a very high margin business" with many research and development costs already "expensed". He added:
Then they've got the plasma donation cost, but that actually could come down because we are heading into harder times.
Meanwhile, Atlas Funds Management chief investment officer Hugh Dive recommended QBE Insurance and Transurban. Commenting on QBE, he said:
I think the insurance companies will do well particularly, for example, QBE. It's got a US$29 billion float, which has earned close to zero for the last 10 years.
Dive also earmarked Transurban, citing the fact that tolls went up when inflation jumped. Dive noted:
… every year with inflation, the tolls go up. For the next four years, Transurban has said that every 1% increase in inflation equals another US$50 million in profit. So there are companies that do quite well in this environment.
