Forget growth stocks like tech. Analysts recommend that investors look for companies that have a lot of money. Markets rallied in January – including the tech-heavy Nasdaq Composite, which rose nearly 10.7% last month for its best monthly performance since July. But analysts say companies with pricing power are a safer bet than technology, given inflation is expected to remain high this year and uncertainty over when the US Federal Reserve will lower interest rates. “The Fed is wary of giving too much traction to the ‘pivot’ narrative,” said Robert Schein, chief investment officer at Blanke Schein Wealth Management. “Since we don’t know how high the Federal Reserve plans to raise interest rates, investors should be prepared for more volatility through the end of the year and into 2023.” “We are starting to enter a bifurcated market: a company with a strong balance sheet will do better than a growth company that has never made a profit,” he said. Sean O’Hara, president of Pacer ETFs, sounded the same note, saying that the market will continue to be volatile. Tech stocks have gotten “a little ahead of themselves,” said CNBC’s “Squawk Box Asia” last week. “Currently, stocks are trading at a discount to the overall market [price to earnings] that generate high free cash flow is preferable to the growth names that led the last bull market cycle, “he said. Companies that generate higher free cash flow are usually in a stronger position to meet debt or other obligations. It also shows how quickly . companies can access cash in the event of an emergency or opportunity. O’Hara’s preferred stocks are energy, health care and better materials. The main options are the US biotech company Moderna and the oil and gas giant Chevron. “It’s not 100% the price of oil, it’s as part of the reduction in energy. [capital expenditure], “he said. “Energy companies used to take every dollar they could … They’re not doing that anymore.” they’re paying dividends and increasing dividends. So what’s really driving the story for energy,” added O’Hara. Schein of Blanke Schein Wealth Management is also positive about energy and health. various economic environments,” he said. He likes the American mining company Freeport-McMoRan, a major copper producer. “These copper-focused companies are well positioned to navigate the inflationary environment because of their pricing power and high demand,” Schein said. Investors seek to reduce growth trading by choosing stocks generating more reliable cash flow. FCX usually focuses on copper and gold mining, so investors will find the company more attractive because the price of the metal is higher,” he said. Copper and gold prices fell, rising 11% and 6% year-to-date, respectively.