Economic Insights
CORNELL CAPITAL GROUP
Download Memo as PDF Is it still the year of not good enough? We concluded our year-end 2020 investor memo by saying that 2021 will be “the year of not good enough.” This does not mean we are expecting an economic downturn. What it does mean is that the current expectations built into stock prices will
Think of a company’s stock market capitalization as the present value of investor expected future cash flows. There are two ways this number can rise or fall. The first is related to the numerator, expected cash flows. For instance, expected cash flows can change when news arrives that affects investor expectations regarding the outlook for
Many of today’s investors, particularly the young aggressive Robinhood types, want big returns, and that is something more than the stock market, or the average stock, can provide. Read the academic literature, or Aswath Damodaran’s blog, Musings on Markets, and you will learn that investors can expect a return of about 6% per year on
BRADFORD CORNELLANDERSON GRADUATE SCHOOL OF MANAGEMENTASWATH DAMODARANSTERN SCHOOL OF BUSINESS Share 0 Tweet 0 Download PDF Abstract For much of the last century, value investors considered themselves to be the winners in the investment world, a result they attributed to their patience, maturity and good sense. That view, at least on the surface, was backed
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