Forget about growth stocks like technology. Analysts are recommending investors invest in companies with lots of cash. Markets rallied in January – including the tech-heavy Nasdaq Composite, which rallied nearly 10.7% last month for its best monthly performance since July. But analysts say companies The company has the right to price it as a safer option than technology, given inflation is expected to be high this year and uncertainty about when the US Federal Reserve will turn around. shaft to lower interest rates. “The Fed is wary of providing too much traction for the ‘pivot’ narrative,” said Robert Schein, chief investment officer at Blanke Schein Wealth Management. “Because we don’t know how high the Federal Reserve plans to raise interest rates, investors should prepare for more volatility through year-end and into 2023.” “We are starting to enter a ramifications market: companies with strong balance sheets will do much better to sustain than growth companies that have never been profitable,” he added. Sean O’Hara, president of Pacer ETFs, has a similar view, saying that the market will continue to be volatile. He told CNBC’s “Squawk Box Asia” last week that tech stocks were “a bit ahead of themselves”. “Currently, stocks trade at a discount to the general market [price to earnings] “Companies that generate high free cash flow are generally preferred to the growth names that have led the last bull market cycle,” he said. O’Hara says energy, healthcare and materials are better options. His top picks are American biotech company Moderna and oil giant Chevron. He said his company is bullish on energy, thanks to the highly profitable free cash flow in the sector. [capital expenditure]”, he said. “Energy companies used to take every dollar they could get their hands on… They don’t do that anymore.” They’re paying dividends and increasing their dividends. And that’s it. what really drives the energy story,” added O’Hara. Schein of Blanke Schein Wealth Management is also positive about energy and wellness. “Quality companies with strong balance sheets and a history of dividend growth are well positioned for him,” he said: “He likes the American mining company Freeport-McMoRan, a major copper producer. “This copper-focused company is well positioned to navigate our inflationary environment given its pricing power and high demand,” Schein said. “Investors are looking to phase out growth trading in favor of stocks that generate more reliable cash flow. FCX is primarily focused on copper and gold mining, so investors will see the public. companies are more attractive when metal prices go higher,” he said. Copper and gold prices have surged, up 11% and 6% respectively year-to-date.