The Federal Reserve is preparing for its first interest rate cut, which could impact the tech sector. On one hand, lower rates can lead to higher valuations for tech stocks. On the other, the rate cut signals concerns about a potential recession. Paul Meeks of Harvest Portfolio Management explains these two sides of the coin in an interview with Yahoo! Finance.
Transcription:
Paul Meeks
It's a two-sided coin. One is, yes, as rates go down, the discount rate to value, aggressive growth, and other tech stocks brings much higher valuations. That's the positive. On the other side of the coin is the reason that the Fed is lowering rates is now they've gone from being concerned about inflation to being concerned about a recession
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