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How can we account for inflation when we say market cap increased by $xB? How can we differentiate an actual increase in value as opposed to currency debasement
by cced 3y ago
How can we account for inflation when we say market cap increased by $xB? How can we differentiate an actual increase in value as opposed to currency debasement?
- renewiltord 3y agoYou measure it as beta against something broad like the total market or the S&P500.
- cced 3y agoIf the currency gets debased and money flows into the market wouldn’t it also just debase the S&P500 equally?
- PeterisP 3y agoIt would debase the S&P500 equally, so any difference between Google's performance and S&P500 performance is clearly caused by something else then inflation/debasement/etc.