markets now and then – capitalisation & valuation

ft.com 20/11/2021 Markets are showing signs of frothing over

ft.com 20/11/2021 Low yields leave traders numb to risk, says ‘scared’ veteran Dan Fuss – Loomis Sayles vice-chair warns markets have given up ‘natural prudence and caution’


ft.com 10/2021 Research alleges groups look to influence the US benchmark pickers by buying debt ratings


hussmanfunds.com 6/2021 Hussman Market Comment – Alice’s Adventures in Equilibrium

…”…Notably, the lack of equilibrium thinking obscures a critical fact about investing: every security, once issued, must be held by someone until it is retired. As a result, the only thing that a security will ever provide to its investors, in aggregate, is the stream of actual cash flows that it delivers between the point that it is issued and the point that it is retired. The price changes called out by Mr. Market are not changes in aggregate wealth – they mainly provide varying opportunities for wealth transfer between one investor and another. There’s an increase in aggregate wealth only if there’s an increase in expected value-added output and deliverable cash flows. Otherwise, a change in the valuation of a given stream of cash flows merely reflects a change in the expected rate of return…”…