Quote:
Originally Posted by Republicaninmass
Intrinsic - belonging naturally; essential. ie face value, even melt value
Stocks - you don't even own a piece of paper anymore. What does future cash flow, or this "value" growth rate you speak of, allow you to spend? it's only worth what someone will pay at a given time based on what they think it will be worth.
edited: and each there is someone selling a stock convinced it will go down, to someone convinced it will go up. This happens with cards sometimes
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Don’t mean to hijack the thread to stocks but growth (no dividends) is particularly (over) valued in low rate environments because it’s the compound affect of discounting that future growth is muted.
Hence value without any dividends (spending $). Add demand from stock buybacks and lack of options being us (market) is the best house in a bad neighborhood and the reduction Of publicly availble stocks from pe buyouts, and you have a meltup