John O'Connell's Top Picks: JPMorgan, Facebook and Bank of America
Investors continue to have two minds towards the valuation of companies: there are those companies that can grow their earnings irrespective of the ills of the world and those that can’t. For those companies capable of growth, the question is how high of a valuation is justified in a zero- rate world. For those struggling, the question is: when do investors judge a return to normalcy and will those companies survive until that time? If one judges a return to the old days, many companies represent good value as interest rates can be expected to stay low longer than most investor time frames.