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That’s not how equity pricing works :)
by eanzenberg 6y ago
That’s not how equity pricing works :)
- joshribakoff 6y agoPricing is whatever people are willing to pay. The market value is not inherently tied to assets intrinsic value. Markets are clearly pricing in growth perhaps irrationally
- eanzenberg 6y agoSo if you want to bet either way you can. That’s the beauty of it all. Put your money where your thoughts are, and if they pan out then awesome. But, pricing is not what “people” are willing to say since the biggest funds really dictate the valuation of equities. They tend to try to have a long outlook, so they are betting that covid is short-term, the recovery will be quick, and Trump will be re-elected. Most people don’t believe these things, but most money is betting on those things.
- joshribakoff 6y agoCorporations are people too, legally ;)