SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Biotech / Medical : Biotech Valuation
CRSP 55.11-2.6%Nov 7 9:30 AM EST
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Biomaven who wrote (593)1/28/2000 5:12:00 PM
From: schadenfreude  Read Replies (1) of 52153
 
A couple comments on the interest rate issue.
Short-term rates are moving up, but long-term rates have been relatively stable. I would view an increase in long-term rates much more negatively than the recent rise in short-term rates for a couple of reasons. First, the rate used to discount future cash flows is on the long end, usually the 10-year Treasury. Unless long-term rates move, valuations are unaffected. Second, long-term rates are much more a function of the market's confidence in the Fed's commitment to hold down inflation over the long haul than the strength of the economy or small blips in inflation. A major increase in long-term rates could be a signal that the market has lost faith in the Fed and is pricing in more inflation risk. This would have a serious, lasting effect on stock valuations.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News