Is DBS Singapore’s indispensable stock?

WHEN interest rates were low, many assets had lofty valuations. 

Using a lower discount rate to value future earnings results in a higher stock valuation. Applying a lower capitalisation rate to projected income leads to a rise in a property’s value.

Moreover, fuelled by cheap debt, businesses could binge on acquisitions to boost profits. And investors could juice up levered returns on investment by borrowing more.