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By that logic, only sustaining value for some period of x days would allow you to say the value of something is y. That doesn't seem accurate to me. How many
by mhp 15y ago
By that logic, only sustaining value for some period of x days would allow you to say the value of something is y. That doesn't seem accurate to me. How many days is x?
- lucasjung 15y agoI don't think it's schedule-driven, I think it's event driven. In particular, I think that there are two events that value must survive in order to be demonstrated real: 1: End of severe information asymmetries (going from private to public--i.e. an IPO--will typically do this). 2: A crisis of confidence. A crisis of confidence can temporarily depress the market valuation of something with real value, but the fundamental underlying strengths will drive the price will recover as the crisis abates; inflated value will not recover in this manner after a crisis of confidence because the crisis will have served to expose the fundamental underlying weakness.