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What Drives Stock Market Returns? (2018)

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Re: What Drives Stock Market Returns? (2018)

#7
post #6

printing your currency to zero.

That's a way to bolster it, certainly. None of the listed companies are on the hook for US debt and they'll just relocate if the US becomes a liability. Their value isn't (greatly) at danger of collapse if the debt becomes overwhelming.

There are also healthy ways to encourage economic growth, but those are too boring for the current moment.

Re: What Drives Stock Market Returns? (2018)

#10
>The PE ratio reflects earnings today, but the most important metric is projected future earnings.

I think the key words are "projected future". Sometimes that estimation is easy; sometimes it is much harder. New tech introduces uncertainty. Speculative entrepreneurs tell stories that multiply the uncertainty.

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