RiverFront Investment Group maintains an overweight stance on US technology stocks, arguing that current valuations and earnings quality differ significantly from the 1999 dot-com bubble. Tech stocks trade at about 23x forward earnings versus 40x in 1999, with profit margins now over 26%, indicating healthier fundamentals. Crucially, free cash flow currently exceeds reported earnings, unlike during the 1999 bubble, suggesting solid business performance. While risks like rising interest rates and geopolitical tensions exist, recent inflation data offers some relief, and IPO supply is manageable given the market's depth. RiverFront will monitor cash flow trends closely as a key signal for any shift in tech investment strategy.
US stock futures rose after a softer-than-expected Consumer Price Index (CPI) report reduced the chances of a Federal Reserve rate hike in July. The market now awaits today's Producer Price Index (PPI) data, which could either confirm easing inflatio...
The FAA has approved SpaceX to resume Starship prototype flights after identifying the cause of a booster failure in May. The next launch, planned for July 16, will be the second flight of the Starship V3 and will carry the first third-generation Sta...
