Investor Sarat Sethi shared his stock picks to position for a higher-for-longer interest rate environment.
Additionally, Sethi favors Uber Technologies over Lyft , saying the former's "capital allocation has been fabulous."
The managing director said he favors Uber Technologies' positive cash flow , which it reached for the first time this year, as well as its brand and international footprint.
"In an environment where rates are where they are, you're not getting a free call option for just growth without any cash flow."
"The market hates this at this point, but if you get great capital allocation story success, seven times forward cash flow, it hasn't been this cheap in over a decade."
Persons:
Sarat Sethi, Morgan Stanley, Sethi, Ted Pick, James Gorman, Uber, Lyft
Organizations:
Douglas, Lane & Associates, Technologies, Communications