Treasury yields have retreated, suggesting that markets are tempering their concerns about the possibility of higher interest rates following recent economic data highlighting sticky inflation. This comes ahead of the Fed's expectations, and while earnings have been encouraging so far, most companies have yet to report.
As a reminder, the driver of a stock's value is the sum of its future cash flows discounted back to today, and with lower interest rates, investors can apply higher valuations to their stocks.
Microsoft, Alphabet, and Meta will report this week, and many other bellwethers will announce their results in the coming weeks.
As a cautionary note, following the crowd can lead to adverse outcomes, and it's best to own high-quality, cash-flowing companies that can weather the ups and downs of the market. Shopify's shares are particularly volatile, with 18 moves greater than 5% over the last year. While today's move may indicate that the market considers this news meaningful, it's important to remember that Sh ← →
As a reminder, the driver of a stock's value is the sum of its future cash flows discounted back to today, and with lower interest rates, investors can apply higher valuations to their stocks.
Microsoft, Alphabet, and Meta will report this week, and many other bellwethers will announce their results in the coming weeks.
As a cautionary note, following the crowd can lead to adverse outcomes, and it's best to own high-quality, cash-flowing companies that can weather the ups and downs of the market. Shopify's shares are particularly volatile, with 18 moves greater than 5% over the last year. While today's move may indicate that the market considers this news meaningful, it's important to remember that Sh ← →
Source: See hereTreasury yields pulled back suggesting markets are tempering the growing concerns about the possibility of higher for longer interest rates following recent economic data highlighting sticky inflation, ahead of the Fed⁘s expectations.
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