You’ll Want to Buy Anything Tech, Says State Street’s Veitmane

The transcript discusses the valuation of tech companies, particularly in the context of IPOs like Snowflake, and the adaptability of high-margin businesses in a remote economy. It explores the changing perceptions of economic growth and recovery, highlighting how low interest rates affect valuation models. The conversation also covers the potential impact of interest rate hikes on equity markets, emphasizing the need to invest in high-duration, high-growth assets in a low-rate environment.

What is a key characteristic of high-margin businesses in the current remote economy?

• They are primarily offline businesses.

• They have low return on equity.

• They are highly adaptable and profitable.

• They struggle to adapt to remote work.

How has the perception of economic growth changed over time?

• Growth below 2% is now seen as a recession.

• Growth above 10% is expected.

• Growth above 5% is considered normal.

• Growth below 2% is now seen as a recovery.

What factor is crucial for valuation models in the current economic environment?

• High inflation rates

• Low interest rates

• High unemployment rates

• Stable currency exchange rates

When would valuation begin to matter significantly according to the discussion?

• When interest rates increase to 3-4%

• When interest rates remain constant

• When interest rates decrease by 1%

• When interest rates increase by 5-10 basis points

What is the expected impact on the equity market if bond yields rise towards 1%?

• It will lead to a rapid recovery.

• It will cause a market crash.

• It will dislocate the equity story.

• It will have no impact.