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A) Stocks weight near term earnings higher than far future earnings. Both because of the time value of money, and less certainty of future performance. B) Stoc
by gizmo686 6y ago
A) Stocks weight near term earnings higher than far future earnings. Both because of the time value of money, and less certainty of future performance.
B) Stock prices reflected the future earnings before anyone knew there was going to be a pandemic this year. Even if long term revenue is not effected, stock prices should drop to compensate for the loss in short term revenue
- refurb 6y agoA) Yes, and many stocks dipped then went back up. I guess I’m asking - what stock? Many of the tech companies saw no loss of short term earnings (rather a bump). B) Yes, but future earnings per-pandemic may not match estimated future earnings now. Again, much of the DJIA growth has been driven by tech stocks and their future earning could certainly be better now, with the shift to technology to support WFH.