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Finance Banking Featured News World

Unpacking US tech valuations: An agnostic assessment

The recent performance of the largest US tech companies has raised concerns about the risk of a stock market bubble. Using a three-stage pricing model applied to the top ten US tech firms, this column finds that current market prices do not appear implausible given the underlying drivers of both recent and expected performance. The […]

Economy Business Featured News World

Explaining firm-level reactions to macro shocks

Understanding differences in firm responses to macroeconomic shocks is key for designing policy actions. This column identifies 67 macro shocks using ‘jump’ days in the US stock market over 2020-2022. It measures firm exposures using individual stock returns and, crucially, discussions of business risk factors in corporate filings. These exposures are largely uncorrelated for different […]