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if your the market leader without competition on a large addressable market your valuation can essentially be infinite. But most stock trades are being driven n
by elisharobinson 7y ago
if your the market leader without competition on a large addressable market your valuation can essentially be infinite. But most stock trades are being driven now by low interest rates once interest rates become more sensible , we should see more sanity. but thats only half the story, low interest rates just create insane price pressure , there can be lot of +/- ve price pressure. The people on wall street have concluded that musk has a very high batting avg , so they are willing to push that price pressure on to the positive side.
- thorwasdfasdf 7y agobut, will interest rates ever become more reasonable again? the US fed and the feds across the world seem to be hell-bent on creating very high inflation. even now that we've had 2.1 and 2.4% inflation, apparrently that's not high enough even though they're supposed to keep it at 2.
- Obi_Juan_Kenobi 7y ago"new paradigm" "this time it's different" Everyone is very impressed that the low rates seem to not being doing what they're 'supposed' to, but that's a long way away from eternal low rates.
- elisharobinson 7y agoInterest rates can be anything , the important thing is it should keep pace with asset/goods creation. Why do you think we just cant stop having real estate bubbles or governments are unwilling to regulate them. Real estate is a great asset creation machine.