Fund manager: ‘Nightmare’ US stock valuations driven by ‘young, dumb’ investors

Re:Fund manager: ‘Nightmare’ US stock valuations driven by ‘... by dpc_pw on Thursday October 15, 2020 @02:43PM (#24792226)

Gov bonds yield below inflation levels. In such conditions anything that can give you any return is worth extra. Stock market valuations are extreme because the monetary conditions are extreme.

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Re:Fund manager: ‘Nightmare’ US stock valuations driven by ‘... by csomar on Thursday October 15, 2020 @05:36PM (#24794330)

It's interesting how many people seem to overlook this. It, over-proportionally, affects assets with a far pay-off date. A stock could be worth $1 and $10 depending on the interest rate and have the same yield over xx period of time.

I have written about this in more details: https://omarabid.com/zero-rates-world

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