News for hackers. Stuff that matters.

A comment on Why is the stock market rallying when the economy is so bad?. Parent comment

Re:Why is the stock market rallying when the economy is so bad? by skybrian on Sunday May 10, 2020 @04:02PM (#23135651)
I assume you're ignoring the discount rate entirely for simplicity? It doesn't seem like money ten years from now should be worth the same as money today.

But I guess that implies that interest rates should go up eventually.

[ Parent | on HN ]
Re:Why is the stock market rallying when the economy is so bad? by jldugger on Sunday May 10, 2020 @04:20PM (#23135808)
No, I think the OP addresses that obliquely here:

> Interest rates are essentially zero

[ Parent | on HN ]
Re:Why is the stock market rallying when the economy is so bad? by denismi on Monday May 11, 2020 @12:40AM (#23138975)
Interest Rates for very secure debt is essentially zero, but future corporate profit expectations are uncertain, so there would be some non-zero risk premium applied in the rate used for determining their present value.
[ Parent | on HN ]