IPOs Rebound as Rate Hikes Slow, But Geopolitical Risks Still Cloud Outlook for Mega-Cap Tech
• IPOs come roaring back as rate hikes end, with growth in biotech, pharma, consumer discretionary • Companies survive rate hikes without a surge in bankruptcies due to strong cash flows, profit buffers • Japanese market seen having 13% upside on resilient economy, reforms driving higher returns • Mega-cap tech more exposed to geopolitical risks that could disrupt semiconductor supplies • Investors may fall back in love with free markets if business environment improves before election