Re-Rating is this year’s big buzzword. It’s the process by which the buyers and sellers in the market rethink the valuation of a stock (or, in this case, every stock) based on a new perception. In 2022 the entire market is up for re-rating all at once now that the Federal Reserve’s rhetoric about fighting inflation has turned hawkish so suddenly.
And so despite the fact that earnings for most companies have been consistently strong, it’s the valuation we’re willing to put on those fundamentals that’s changed so drastically. The multiple. We get Peter Boockvar’s take on this and a lot more on this week’s The Compound and Friends.