Established in 2006 as a Community of Reality

Welcome to the Neno's Place!

Neno's Place Established in 2006 as a Community of Reality

Iraq Dinar/News is a popular topic among many topics this board offers. You must log in to see and participate in our Dinar sections.

Your welcome to be apart of Anesis Club (Private) after at least becoming a FREE Rookie in my Network at this link https://www.onelife.eu/signup/nenosplace

Neno

I can be reached by phone or text 7am-7pm cst 972-768-9772 or, once joining the board I can be reached by a (PM) Private Message.
Established in 2006 as a Community of Reality

Many Topics Including The Oldest Dinar Community. Copyright © 2006-2017


Fundamentalists & their Formulas

Share

Lobo
Moderator
Moderator

Posts : 20878
Thanked : 980
Join date : 2013-01-12

Fundamentalists & their Formulas

Post by Lobo on Wed 30 Dec 2015, 12:17 pm


Fundamentalists & their Formulas

Posted on December 30, 2015 by Martin Armstrong

QUESTION: Marty, I believe that the traditional way of looking at even value no longer applies. Take the claimed doctrine in finance named the dividend discount model. They assume that the price of a common stock is the present value of its future cash flows discounted by the rate of interest. What happens when interest rates are manipulated to negative? Does any theory or model make any sense any more?

1-When-Genius-FailedANSWER: No. The value of a stock is ABSOLUTELY in no way determined by such a formula. That is up there with the random walk. It has no relationship to market trends whatsoever because markets trade on ANTICIPATION — not on fact.

The dot.com bubble is one example. They treated the auto stocks the same during the late 1920s. The South Sea bubble and the Mississippi bubble were the same, as was the Russian Bubble which burst in 1998 and resulted in the collapse of Long-Term Management. The book written on that one was entitled, “When Genius Failed”. These are made up by fundamentalists who waste their time looking for some magic formula that does not exist because it is far more dynamic than they can possibly imagine.

This entry was posted in Q&A and tagged bubbles, Fundamentalists, When Genius Failed by Martin Armstrong. Bookmark the permalink.

    Current date/time is Sat 25 Feb 2017, 12:15 pm