Re:Why is the stock market rallying when the economy is so bad?
by dasudasu on Sunday May 10, 2020 @03:33PM
(#23135395)
Discounting is also a harsh mistress. If your model expected a 10% discount rate but actually achieves -20%, say next year, then it would need to produce 51% just to get back to baseline on the year after that. Early missed returns do hurt disproportionately unless there is an easy way to get back on track.
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