If we see high interest rates and the inflation that comes with it, PM will benefit as it is essentially short the U.S. dollar. Sure, the dividend yield will decline in perceived value, but the value of the highly profitable equity will increase dramatically.
My initial plan was to buy MO and PM in equal amounts to hedge each other and collect a fat dividend. In theory if the dollar tanked PM would be a star and MO would still put out dividends and grow with inflation so to speak. If foreign currencies tanked then PM growth would ultimately offset the negatives and MO divvies would be that much stronger. However, I ended up losing 25% of my capital from the stock drop which doesn't appear to have a bottom.
With the Democrats effectively going out to punish investment with higher taxes on the productive and bailouts for the losers I don't see how this mess will reverse. Then we have the disaster of SS and Medicare coming up very soon with 70 million baby boomers retiring.
The solution would be to drop Medicaid, cut Medicare to the bone, and significantly reduce income taxes on businesses and individuals. Individuals would have more money in their pocket to afford the loan payments and businesses would be in a better position to get credit and reinvest. Let the bad banks fail. It would be painful but it would work.
However, we don't have the stones to do it. So instead, Govt is going to drag itself down with the banks.