tag:blogger.com,1999:blog-8152901575140311047.post9182670779966544415..comments2024-03-28T12:49:46.624-04:00Comments on Musings on Markets: Data Update 2 for 2020: Retrospective on a Disruptive DecadeAswath Damodaranhttp://www.blogger.com/profile/12021594649672906878noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-8152901575140311047.post-77919835618717942202020-01-29T10:06:10.305-05:002020-01-29T10:06:10.305-05:00Thanks for another excellent post. While the disc...Thanks for another excellent post. While the discussion on stock market performance in comparison to bonds and bills was very enlightening, I think it is missing an important factor for value investors. <br /><br />Since we calculate PV=cash flows divided by an appropriate discount rate, then wouldn't we have a more meaningful discussion by looking at stock market's performance comparisons by including cash flows (or earnings) in the numerator?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-24381986878124853252020-01-28T06:43:22.363-05:002020-01-28T06:43:22.363-05:00Thank you for another excellent (and informative) ...Thank you for another excellent (and informative) post. <br /><br />I particularly appreciated the graph showing how the T-bond rate and the intrinsic rate follow nominal GDP. However, I am curious if you have any thoughts on how this relates to the possibility of GDP not capturing the contribution of the digital economy: <br /><br />If tech has helped reduce inflation (by price-decreases), but GDP does not capture the value added by freebies like search engines and social networks and all the benefits of the Internet more generally, wouldn't this suggest that GDP is under-stated and that the intrinsic rate is, in fact, too low? Alternatively, wouldn't the data that you present suggest that our GDP measurements are indeed accurate, and that the digital economy adds little beyond what is measured by more traditional means? <br /><br />Would be interesting to hear your views on this, since it's something I've been mulling over for a while but lack the insight and experience to conclude much about.Anonymousnoreply@blogger.com