Know Your Risk Podcast Daily Dots - February 12, 2025
Feb 12, 2025
Explore the current state of financial markets, focusing on currency volatility and its effects on major indices. Discover how Trump and Putin's peace talks are shaping market dynamics, especially for Polish equities and Ukraine. Delve into the valuation disparities between international ETFs and U.S. stocks, while navigating geopolitical relationships that influence trade. Learn about the semiconductor market's unique valuation challenges and the future of microchip technology, along with insights on inflation's impact on economic policy.
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Valuation Spreads
- Valuation spreads between U.S. and international companies are becoming very compelling.
- U.S. valuations are extreme, especially compared to international markets.
US Valuation Premium
- There's a consistent premium assigned to U.S. companies over international ones.
- This premium can reach 3-4X for similar growth rates.
Palantir's Valuation
- Palantir is an example of a company with an extremely high valuation, currently over 70 times revenue.
- Despite its 36% annual growth, this is much lower than other high-growth tech companies.