People are suggesting that if you believe that we’ll have higher input costs and higher interest rates you should sell tech stocks.
It’s just the opposite (at least, for long term investors).
If there is inflation, and if there are higher costs of capital, it takes 2 things to survive in that environment:
Scale and technology.
Big cap tech companies have the scale to protect- and grow- earnings and, thus, their stock prices, in times of rising input costs and higher costs of capital.
As for anyone else trying to protect their own businesses from these things – they need the technology that (“certain”) technology companies provide- driving these certain technology earnings higher.
Great earnings trump the discount rates. Great earning overshadow the discount rates and make it less relevant, until yields go very, very high (over 4%). And even then, the cost of capital will be so high, that only the biggest companies will be able to grow earnings, and can, thus, grow market-share- so, while money should be allocated to Treasuries at such time, and, perhaps, gold and commodities, long term investments in (certain) big cap tech should be held or new investments made.