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%.
Podcast: New highs for US stocks, NatGas rips higher
Today we look at US equities pulling to new highs for the cycle, while volatility indicators continue to signal a reluctance to wax too complacent. Europe also posted a solid comeback yesterday after recent weakness. We also look at enormous price hop in Natural Gas yesterday in the US and possible takeaways of interest for future inflation, take status of the US dollar, check in on the strength of various equity themes and much more.