U.S. Corporate Valuations Could Struggle Due to High Global Bond Yields
Dow Jones
Yesterday
1454 GMT - U.S. corporate valuations face pressure, despite posting strong earnings, due to elevated global bond yields, MFS Investment Management's Benoit Anne says in a note. "In parts of the market where expectations are stretched, even beat-and-raise earnings may not be enough," he says. Companies with stronger cash flow, prudent capital expenditure, and are underpriced look attractive in the current environment, however.
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