The Federal Reserve will most likely lower the target for the Federal Funds Rate 4 times this year, mainly on political pressure, according to Wolfteam Ltd.'s projections and estimates.
US Inflation is stubbornly higher that the Federal Reserve PCE inflation target, but that could be deemed transitory again and interest rates levels could still be lowered four times in 2024.
This will make naturally stocks cheaper since both the interest rates levels and growth are used to discount profits and terminal value to arrive at a valuation, value for common stocks. And now interest rates levels are expected to decrease, which will also speed up the revenue and profit growth of companies since now companies will be able to take out cheaper bank loans, financing, driven by lower interest rates.
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