LONDON: Despite the deepest economic downturn since the Great Depression, the S&P 500 index is up 6.5 per cent this year.
At an interest rate of 5 per cent, you need $20 million to earn $1 million a year, while at an interest rate of 1 per cent you need $100 million. One worrying message of high stock prices, therefore, is that markets expect low growth and low interest rates for the foreseeable future. If investors place a higher value on these companies’ profits, however, it suggests they do not expect increased investment and competition to erode them. In other words, they see a company enjoying monopoly profits and expect them to continue.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:
South Africa South Africa Latest News, South Africa South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Australia: Shares rise on lift from financial, energy stocks[BENGALURU] Australian shares closed higher on Wednesday, supported by gains in financial and energy stocks, on hopes that the United States was nearing a deal on a stimulus package. Read more at The Business Times.
Source: BusinessTimes - 🏆 15. / 51 Read more »
Tokyo: Stocks rise on US stimulus optimism[TOKYO] Japanese shares closed higher on Wednesday as optimism that US lawmakers could reach an agreement on a pre-election stimulus package lifted riskier assets globally. Read more at The Business Times.
Source: BusinessTimes - 🏆 15. / 51 Read more »
Singapore stocks rise at open, tracking modest gains on Wall Street; STI up 0.3%SINGAPORE shares opened slightly higher on Wednesday after US markets saw modest gains amid renewed hopes for a stimulus package. Read more at The Business Times.
Source: BusinessTimes - 🏆 15. / 51 Read more »
Hong Kong: Stocks rise at open[HONG KONG] Hong Kong stocks kicked off Wednesday on a positive note, tracking a rally on Wall Street and fuelled by fresh hopes of a US stimulus breakthrough. Read more at The Business Times.
Source: BusinessTimes - 🏆 15. / 51 Read more »