tag:blogger.com,1999:blog-8152901575140311047.post3883442759890070266..comments2024-03-28T08:16:22.230-04:00Comments on Musings on Markets: A Viral Market Meltdown Part II: Clues in the Debris!Aswath Damodaranhttp://www.blogger.com/profile/12021594649672906878noreply@blogger.comBlogger7125tag:blogger.com,1999:blog-8152901575140311047.post-40299104673980810262020-03-16T13:24:18.642-04:002020-03-16T13:24:18.642-04:00Hello Sir,
Thank you for a great summary of what...Hello Sir, <br /><br />Thank you for a great summary of what is going on in the market. <br /><br />Could you comment on how the current situation is affecting the derivatives markets? I reckon they might be benefitting from the volatility we are seeing in the markets.PBhttps://www.blogger.com/profile/08684469695262320018noreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-83285259702055086142020-03-16T13:23:45.642-04:002020-03-16T13:23:45.642-04:00Hello Sir,
Thank you for a great summary of what...Hello Sir, <br /><br />Thank you for a great summary of what is going on in the market. <br /><br />Could you comment on how the current situation is affecting the derivatives markets? I reckon they might be benefitting from the volatility we are seeing in the markets.PBhttps://www.blogger.com/profile/08684469695262320018noreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-18710790160408152082020-03-16T05:10:54.489-04:002020-03-16T05:10:54.489-04:00Hello professor. I had one question. While I under...Hello professor. I had one question. While I understand the logic behind listing cash flow payout as a value driver, wouldn't companies be better off retaining and reinvesting their internally generated cash, especially if they are in the growth phase?Manu Bansalnoreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-37877194138007709582020-03-15T14:18:02.853-04:002020-03-15T14:18:02.853-04:00Dear Prof:
Great post, as usual! :)
I believe th...Dear Prof:<br /><br />Great post, as usual! :)<br /><br />I believe the decline in oil prices is not just due to the dependency on China. But a significant portion of this decline is due to the ongoing OPEC+ supply disagreement between Saudi Arabia & Russia.<br /><br />Yoon-Seri (Seri's Choice)noreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-34837270429217333892020-03-11T13:46:26.480-04:002020-03-11T13:46:26.480-04:00Professor: Does it make sense to use the current L...Professor: Does it make sense to use the current Long Bond rate as a proxy for "Expected growth rate in the long term?". One, it is at extremely low levels and I mean compared to ever. Two, it is too volatile at the moment due to extreme fear. Would it not make sense to use a long term average or something that represents a median view instead of this current environment?<br />Thanks.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-44084505317337580882020-03-10T22:37:01.662-04:002020-03-10T22:37:01.662-04:00Another great post. Thanks for the update. I loo...Another great post. Thanks for the update. I looked at the tab in your model that has earnings data for the SP500. There are numerous years when earnings dropped more than 10%, most notably 2008, when they dropped a whopping 40%. I think using a 10% drop for 2020 may end up being too conservative. Wall Street analyst don’t do any investigative work other than accept guidance from company managements so their estimates are a moving target. The good news that I saw in the data, which goes back to 1960, is that in just about after every drop, earning recover back to pre-drop level within three years.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-55675156611923812392020-03-09T20:42:03.620-04:002020-03-09T20:42:03.620-04:00Hi Aswath,
Thank you or another great post. In y...Hi Aswath, <br /><br />Thank you or another great post. In your post Part 1 you had a table where you analyzed where you said you feel the market is still overvaluing the S&P 500. Could you publish a revised version of the same or any comments around it given the new data you have?Anonymousnoreply@blogger.com