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I don't disagree with you that the stock market is inflated, but remember that stocks should be valued by looking at the estimated sum of their future cash flow
by ironSkillet 7y ago
I don't disagree with you that the stock market is inflated, but remember that stocks should be valued by looking at the estimated sum of their future cash flows, not just their current cash flows. And this is relative to a riskless cash flow, like e.g. treasuries, which are controlled by interest rates.
- twomoretime 7y agoHow long are people expecting these companies to stay in business? I think people are just buying in now while things are cheap and that's leading to a "recovery". Particularly given the longer the run the more risk averse cash you attract while prices are discounted. I bet there's another "crash" coming. I'm not sure enough to short my money where my mouth is though, so to speak.