tag:blogger.com,1999:blog-8152901575140311047.post9135450106787831988..comments2024-03-28T12:49:46.624-04:00Comments on Musings on Markets: Data Update 2 for 2021: The Price of Risk!Aswath Damodaranhttp://www.blogger.com/profile/12021594649672906878noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-8152901575140311047.post-40506521413190649132021-01-22T11:51:57.867-05:002021-01-22T11:51:57.867-05:00Question on your assumption of growth for the inde...Question on your assumption of growth for the index; given that the stock indices are weighted towards fast growing tech stocks, aren't you penalizing your valuation of the index by having it trend towards global economic growth levels? Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-17234826246336689242021-01-22T06:37:12.817-05:002021-01-22T06:37:12.817-05:00Dear Professor,
thank you for this insightful pi...Dear Professor, <br /><br />thank you for this insightful piece. I have a question regarding the market scenarios. I agree with the difficulty of earnings above expectations, but assuming these are eventually reality (+10%) in a low rate environment (1%), wouldn't there be the possibility of higher than expected inflation, particularly with new stimulus? While currently inflation is depressed, assuming a rise in inflation would mean the central bank could only allow the dollar to devalue against other currencies if they do not want to touch interest rates? Would this benefit companies in the long term, giving lower nominal corporate debt? <br /><br />Thank you for your time and for all the work you share. Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-40228571091303147262021-01-21T16:04:18.857-05:002021-01-21T16:04:18.857-05:00Have you tried to look at the index including some...Have you tried to look at the index including some separation of S&P 495 vs S&P 5 (i.e. the big 5 tech stocks)? At over 20% of the index concentrated in those few stocks, I would think they must be skewing the valuation?<br />Further, if we could see the valuation of those 5 against the valuation of the rest, it might give a clearer view of whether the overall market is truly over or under-valued.Anonymousnoreply@blogger.com