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For at least "conventional" blue-chip stocks, if the market fails to represent the present value of all future dividends, discounted back to the present, tradin
by swolchok 17y ago
For at least "conventional" blue-chip stocks, if the market fails to represent the present value of all future dividends, discounted back to the present, trading based on that metric should be a dominant strategy, since it is a method of extracting value from a stock without trading it.
- Eliezer 17y agoIf the stock is underpriced, sure. But shorting overpriced stocks comes with a cost - what if the market gets even more irrational over the next few years?