4 ms·
I think you are massively incorrect. Equities right now are at a pretty massive discount to future value. If anything I think the coronavirus effect on the econ
by mlthoughts2018 6y ago
I think you are massively incorrect. Equities right now are at a pretty massive discount to future value. If anything I think the coronavirus effect on the economy has just demonstrated that economic growth is fundamentally not impacted much by around 1/3 of all jobs. The labor product and consumption activity of that 33.3% just doesn’t matter.
The implications of this seem mostly sociological to me. Is that a good state of affairs for the world? Could we use those people more productively?
The implications are not about the current stock market.
Amazon and Microsoft are pretty damn likely to keep growing in value for 10+ more years regardless of any coronavirus situation. That’s an amazing / dumbfounding situation. But it still would imply a rational longterm investors sees those stocks as being attractively priced right now.
- bpt3 6y ago> Equities right now are at a pretty massive discount to future value. Using what metric?
- orwin 6y agoProduction is changing the state of the matter, by transforming, aggregating or displacing said matter. I can tell you that if you shut down 1/3 of the machine, you will see a 1/3 drop GDP.
- rlucas 6y ago> the coronavirus effect on the economy has just demonstrated that economic growth is fundamentally not impacted much by around 1/3 of all jobs. The labor product and consumption activity of that 33.3% just doesn’t matter. If you're right about that we're into revolution territory. If COVID reveals that we've built an economy that not only doesn't care, but doesn't even register the existence of 1/3 of the population, the body politic may have had a poison dose.