Cost of Capital Ramifications of the Russia-Ukraine War and Global Inflationary Pressures Podcast

The following points were discussed:

• 2:37: How was cost of capital impacted by global economic and political changes since the outbreak of COVID-19?
• 4:36: Shifting in the U.S. central bank’s stance in monetary policy: how have interest rates affected the U.S. financial markets in general?
• 9:15: Uncertainty around when U.S. high interest rate hikes will peak. Building inflationary pressures had an impact on future interest rate policy and on long-term rates.
• 14:59: The regime of artificially low interest rates in the U.S. is shifting. The Fed has held interest rates artificially low for years but that is changing. Risk-free rates are normalizing.
• 25:13: While the entire globe is dealing with various crises, the U.S. market fundamentals are still positive. U.S. markets have still recovered at a faster pace than markets in other economies.
• 26:15: The rise of private equity and venture capital benefits U.S. markets. M&A activity may still continue in the coming year.
• 28:10: European’s economic dependence on Russia for energy and China’s ability to attract global investment inflows.
• 30:52: Human innovation may help solve the energy problem.
• 32:20: Trends for the future: ESG and impact on companies. Advisors will need to be prepared to deal with regulatory, taxation and other related changes.