Strategists at French bank Societe Generale tend to agree. They’ve looked at the theoretical impact of a rise in bond yields, at different price-to-equity ratios. Given that the Nasdaq Composite is trading on 31.5 times earnings, according to FactSet data, the chart shows the impact could be steep.
That said, most notable is that Kalish remains bullish on stocks even with those risks. He looked at another measure of valuation, using Census Bureau data on cash-flow margins. “As cash flow has improved since the early 1990s and the cost of capital has fallen with interest rates, the economic margin has risen,” he writes. Right now, that margin is above its 5-year average. In the U.S., the firm is recommending small caps over large caps and value over growth.
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The $1,400 stimulus checks from the $1.9 trillion relief package signed into law by President Joe Biden could arrive as early as this weekend. Biden set a May 1 target for all adults to be eligible to receive vaccines.
will be in the spotlight after the biotech said a completed late-stage clinical study showed that its vaccine candidate was 96.4% effective against “mild, moderate, and severe disease caused by the original COVID-19 strain.” Thailand delayed the rollout of the AstraZeneca
vaccine, joining Scandinavian countries including Denmark, over blood clot concerns. Italy reportedly will impose a lockdown over the Easter weekend, according to wire service reports citing a draft decree.
China is planning ways to tame e-commerce giant Alibaba
according to The Wall Street Journal, as the chief executive of Alibaba-held Ant Group resigned. China also fined 12 tech companies including Baidu
for alleged antitrust violations.
Electronic signature company DocuSign
topped revenue and earnings expectations for its latest quarter and delivered a better-than-expected outlook on those metrics.
Producer prices rose an in-line 0.5% in February. Consumer sentiment data also is due for release.
The yield on the 10-year Treasury
rose as high as 1.61% — surprising analysts given the successful auction of bonds of that maturity earlier in the week.
particularly on the Nasdaq 100
slumped. Gold futures
fell by around $20 per ounce.
There’s a bull market in twins — with the birth rate up by a third since the 1980s.
Scientists want to send 6.7 million sperm samples to the Moon as a global insurance policy.
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