How Value Investors Use the Current Rate Environment

In Episode 58, Lucas and Luna discuss how value investors should navigate the current interest rate environment following the Fed's June 2026 decision to hold rates steady at 3.63%. They explore why JPMorgan shares have surged 6.4% in five days while ExxonMobil has dropped 4%, and what these divergent moves tell us about sector positioning in a higher-for-longer rate world. The hosts explain the concept of earnings yield versus bond yield, and why a 3.65% interest on reserve balances changes the math for cash-heavy value portfolios. They also touch on how the Fed's new tone under Chairman Warsh affects the discount rate used in intrinsic value calculations. A practical episode for any value investor wondering where to look for bargains when the risk-free rate isn't so risk-free anymore. #ValueInvesting #InterestRates #Fed #JPMorgan #ExxonMobil #EarningsYield #DiscountRate #WarrenBuffett #BenjaminGraham #FinancialStocks #EnergyStocks #CashFlow #BondYields #HigherForLonger #PortfolioStrategy #Finance #FexingoBusiness #BusinessPodcast Keep every episode free: buymeacoffee.com/fexingo