Quote:
Originally Posted by Republicaninmass
Unlike coins, which have an intrinsic value, Stocks (without dividends) only carry a perceived value, similar to cards. They are only worth what someone will pay, and are subject to a catalysts within and outside if their respective marketplace.
In this regard, cards are are a similar "investment vehicle" to (non-dividend) stocks.
|
I respectfully disagree on these points. Everything is “perceived”.
Coins intrinsic value is limited to face value which is nominal. Anything above is collectible value, same as baseball cards but without the attachment to history.
Stocks without dividends are valued based on its growth rate of future free cash flows (augmented by one time tax cuts, unsustainable accommodative central banks, and admittedly a strong economy) discounted by a historically low Goldilocks discount rate, and impacted by smoke and mirrors stock buybacks and positive headline risk fomo.
Cards are impacted by general asset (re)valuation, employment, and people’s liquidity requirements as it impacts short term supply and demand.
They all have different coefficients, but would suspect coins and cards have higher correlation and r squared than cards and stocks.