Stock Valuations and Sensitivity

Stock Valuations and Sensitivity

Even with the recent sell-offs, the valuations for growth stocks (especially in the tech sector) are pretty high.

What that means is that their prices are even more sensitive to rate changes. Implication of this? A new announcement by Fed or change in interest rate for other reasons can create or destroy fortunes.

 

I am an Executive MBA candidate at Columbia Business School. I am also a husband, a management consultant, a blogger, a music fan, an art lover and a bunch of other things too.