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Doubt. Stocks would not be 90% cheaper if they were valued as a series of time-discounted and risk-adjusted future cash flows.
by thebean11 5y ago
Doubt. Stocks would not be 90% cheaper if they were valued as a series of time-discounted and risk-adjusted future cash flows.
- chrisco255 5y agoOf course they would. The speculation of future growth and sustained growth is built into the price of all stocks. And if you think that's wild wait until you learn about derivatives.
- thebean11 5y agoI guess on a super literal level, predicting future cash flows based on past cash flows is "speculation", but certainly not in the same way that derivatives are.