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It's a sensible thought, but EMH argues that speculators would have already priced in that future expected value, again leading to a price rise in line with sal
by drcode 7y ago
It's a sensible thought, but EMH argues that speculators would have already priced in that future expected value, again leading to a price rise in line with salaries/inflation.
- ThrustVectoring 7y agoThe speculators have to use a discount rate higher than the risk-free rate, otherwise why would they be doing real estate speculation instead of earning risk-free interest? Granted, the risk-free rate doesn't have to be above-inflation, but the real interest rate currently is positive in the US.