money MARKETS now and then – asset prices – capitalisation – valuation

markets valuation

re-evaluation reversals renegotiated 13-1-2022 Wie gefährlich ist der Liquiditätsentzug für den Markt? Über steigende Zinsen muss man sich vorerst keine Gedanken machen. Für den Aktienmarkt ist der drohende Liquiditätsentzug von größerer Bedeutung. 12-1-2022 Billionaire trader Paul Tudor Jones rings the bubble alarm, warns the Fed could tank the economy, and predicts pandemic winners will struggle – by Theron Mohamed 12-2021 Will the world economy return to normal in 2022? – If it does not, a painful economic adjustment looms by Henry Curr 23-12-2201 The Market is Now Forecasting More Than 3 Hikes in 2022 – Investors increasingly believe the Fed will hike sooner and more often in 2022. 12-2021 2022 to see monetary decoupling between West and East – It does not look like the new year is going to be calmer than 2021 – By Alicia Garcia Herrero 4/12/2021 Omicron and US monetary policy uncertainty roil global markets 20/11/2021 Markets are showing signs of frothing over 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’ 10/2021 Research alleges groups look to influence the US benchmark pickers by buying debt ratings 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…”…