- Reflation trades will stop when equity yield is equal to bond yield. And not all tech stock prices need to go down during a reflation trade.
- Prices of stocks with high earnings momentum need not go down because their earnings will increase more than enough to catch up with the competitive, rising bond yield.
- Five undervalued tech stocks (IPG Photonics, ServiceNow, Paycom, Advanced Micro Devices, Qualcomm) are those stocks of high earnings momentum.
- Undervalued and high growth stocks most likely outperform in a rising interest rate environment.
For further details see:
Top 5 'Undervalued' Tech Stocks That Should Do Well In A Rising Interest Rate Environment