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This seems strange to me. If the author "scoured hundreds of different factors" to find the ones to make the graph flat, isn't he just picking the data to match
by shard 11y ago
This seems strange to me. If the author "scoured hundreds of different factors" to find the ones to make the graph flat, isn't he just picking the data to match his theory? Surely if he searched through enough factors he would eventually find ones to support his theory.
For those of you who understand regression analysis, does his claim that his thesis is confirmed with regression analysis hold water?
- mywittyname 11y agoThis is what I think too. The damn ratio of equity prices to fed assets is pretty much flat during 80-90% of his graph. If you truncated the graph at 1995, it would show the same trend. In fact, I think his graph suggests the opposite of his conclusion: which is that fed assets should maintain a steady ratio with equity values for strong economic growth. The times when they diverge coincide with economic bubbles.