Timmer: Higher cost of capital from Fed rate hikes requires broad asset resets
Urien Timmer · An Investor’s Briefing · Sep 12, 2023 · at 3:32
Jurrien Timmer, Director of Global Macro at Fidelity, outlines the financial principles driving the 2022 market valuation downturn across equities and fixed income.
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“All investments are really valued as the present value of future cash flows, and that's true for bonds, it's true for stocks, and what the Fed was doing last year was raising the cost of capital, and that requires a reset for all assets, and that's exactly what happened.”
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