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>US equities are frothy but are backed by cashflows backed by a consumerist society in a mostly functioning democracy. "backed by" is doing a tremendous amount
by nemothekid 5y ago
>US equities are frothy but are backed by cashflows backed by a consumerist society in a mostly functioning democracy.
"backed by" is doing a tremendous amount of work in that sentence. For some comparison, Evergrande is currently worth 2x GME.
- toomuchtodo 5y ago> For some comparison, Evergrande is currently worth 2x GME. True! But GME is not a representation of Gamestop's enterprise value at the moment (and therefore, a poor analogy); GME is currently a representation of a microcosm of equity market participants attempting to determine if there "less than fundamental" mechanisms at play (derivative/index based shorts, etc) on the security.