MM102: J.P. Morgan's $1trl target & why good data is bad news for stocks!
Market Maker
00:00
The Impact of Interest Rate Sensitive Stocks on Share Prices
Tech firms are growing, they're top and bottom line growth rates. And so that more rapid growth rate is why you get higher valuations because you're seeing some of that future growth being priced into the market cap today. But then interest rates are rising. Exactly. So if you like the value of that future money, it has dropped is now less valuable today. That's why share prices come down in those interest rate sensitive stocks. Yeah. The idea here is then that JP Morgan could become part of that club. You know, from a very top level perspective, kind of make sense with tech. Or perhaps you could explain that? Why are the tech valuations so wildly different to
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