Webinar Replay: Cost of Capital in a Year of Elections

Name: Webinar Replay: Cost of Capital in a Year of Elections
Start: 2024-09-25T00:00:00Z

Stocks reached record highs through mid-2024, boosted by hopes of productivity gains stemming from Gen-AI. More recently, markets have experienced turmoil due to investor fears of a possible recession and over-optimism regarding earnings improvements from Gen-AI. In addition, the U.S. is heading into Presidential elections, creating additional uncertainty for businesses and consumers. Failure to address the growing U.S. Federal debt burden and large budget deficits could place upward pressures on long-term interest rates. Meanwhile, major central banks are at a crossroads on the pace and magnitude of future interest rate cuts. These headwinds mean that companies are now facing a higher cost of capital that matches the levels last seen during the 2008-2009 Global Financial Crisis.

Kroll’s managing director Carla Nunes and director James Harrington discussed the latest economic and financial market developments that have an impact on valuations and cost of capital estimates.

Learning Objectives

Examine the latest real GDP growth forecasts for major geographies and how economic activity is being impacted by the current interest rate environment
Examine U.S. equity market performance in years of U.S. Presidential Elections vs. non-election years
Discuss the impact of the Fed’s September monetary policy meeting on financial markets and what this means for the U.S. and the global economy
Recognize the latest trends in safe-haven government bond yields and associated monetary policy by other major central banks
Identify economic indicators and financial market risk factors that impact Kroll’s U.S. and eurozone equity risk premium recommendations
Review certain country risk premium trends, with a focus on some of the countries most impacted by high inflation and high interest rates

Please click here to download the webinar slides.

Presenters

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The Kroll Cost of Capital Navigator is a global cost of capital tool and data delivery platform. This is one of the most authoritative sources of equity risk premia, size premia and other critical data used in computing cost of capital. Users can get best-in-class data, with the option to also use our tools that guide them through the process of developing global cost of capital estimates. The product suite is comprised of two annual subscription products: the U.S. Cost of Capital Module and the International Cost of Capital Module.

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