4 ms·
What's your reasoning for concluding that stocks were substantially undervalued? Because another way to read the situation is that stocks are simply the asset
by skohan 5y ago
What's your reasoning for concluding that stocks were substantially undervalued?
Because another way to read the situation is that stocks are simply the asset of last resort. In a world with no interest, you can't park money in bonds (or CD's etc.) so you've basically got stocks, real-estate and commodities left as options.
Large-scale asset managers are not going to park billions of dollars under the mattress, so basically it has to go to stocks.
- bluecalm 5y agoNo deep analysis on this one. I just think it's a crazy good deal to be able to buy stock of the biggest corporations which lead humanity technological progress, have huge political influence and even at today profit levels return 3-4% per year (in reality much more as a lot of money is invested in research/new projects which are going to be profitable in the future). I think Apple/Amazon/Alphabet/MSFT etc are going make even more in the future and current price is a steal, especially considering those are highly liquid assets with 0 cost of maintenance.