Every week I’ll provide updates on the latest trends in cloud software companies. Follow along to stay up to date! Rates! Rates! Rates! This week was quite interesting. We had the FOMC meeting on Wednesday, and it wasn’t a surprise that the Fed did not hike rates any further. However, we saw the 10Y spike to 4.5%. This continues a trend from April that has seen the 10Y steadily rise from 3.3% to 4.5%. So what’s going on?
“in this moment strong economic data, and signs of a soft landing, may actually be a bad thing for software valuations (and equity valuations more broadly), because it implies rates will be held higher for longer.”
Well put...and sad 😢
“in this moment strong economic data, and signs of a soft landing, may actually be a bad thing for software valuations (and equity valuations more broadly), because it implies rates will be held higher for longer.”