Growth investing and valuation dynamics under low interest rates
Low interest rates and expectations that they remain low for a long time is changing investors attitudes towards equity valuation. More technology companies with predictable free cash flows are being valued as bond proxies. Under these conditions technology stocks could go much higher as long as the US 10-year yield remains below 1.5%.
Market Quick Take - August 5, 2020
Gold prices rose to new record highs, with spot gold clearly 2,000 per ounce for the first time. After an early wobble on Wall Street, US equities closed at new highs for the cycle driven by technology stocks and the US dollar wilted, while safe haven treasuries were strongly bid, taking the US 10-year treasury yield benchmark to its lowest daily closing level ever at 0.507%.