'Big Short' investor says white-collar jobs bubble is 'bursting'

Re:'Big Short' investor says white-collar jobs bubble is 'bu... by opportune on Friday September 30, 2022 @05:28PM (#33041041)

Earnings and P/E in isolation are not good indicators. They should be at least discounted against the “risk-free” rate of return, which if you haven’t noticed is high relative to the past two decades with further increases to come.

What a needlessly condescending reply

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Re:'Big Short' investor says white-collar jobs bubble is 'bu... by atdrummond on Friday September 30, 2022 @05:43PM (#33041190)

I would imagine most HN posters have never done a DCF analysis in their lives but I know plenty of people who have which have never beat the market. Not sure I buy any model other than Graham-Dodd’s these days.

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Re:'Big Short' investor says white-collar jobs bubble is 'bu... by opportune on Friday September 30, 2022 @06:42PM (#33041681)

Sure, that’s probably a better model. I don’t see anything wrong with it and it has more parameters.

I just think P/E by itself is way too oversimplified and a pretty garbage metric when used in aggregate + historically due to things like interest rates, sector/business model skew, relative maturity of companies, etc also fluctuating over time. It’s like Week1 of value investing 101, not an actual metric by which you’d want to engage in value investing or historical analysis.

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Re:'Big Short' investor says white-collar jobs bubble is 'bu... by ztrww on Saturday October 01, 2022 @05:44AM (#33045316)

dot-com occurred in an environment where bond yields were considerably higher than they are now. Yet SP500 P/E wasn’t that much lower and had risen to higher levels than in 2021 despite yields being 3x higher.

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Re:'Big Short' investor says white-collar jobs bubble is 'bu... by RC_ITR on Friday September 30, 2022 @10:46PM (#33043326)

Ok what's your equity risk premium? How'd you calc it?

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