Finance theory in recent years has stressed the importance of changes in the discount rate for explaining movements in stock prices. In this video, we describe how this works using data provided by Prof. Aswath Damodaran. You can find both Damodaran’s annual paper on the equity risk premium and his calculation of the ERP for
Economic Insights
CORNELL CAPITAL GROUP
Relative price changes, changes in the price of one good or service relative to others, are often confused with inflation but are fundamentally different. This difference can lead to a misunderstanding of the causes of inflation. In this video, we explain the difference and what it implies for policies to control inflation.
From the pandemic lows of March 2020 to the end of 2021, stocks had an incredible run. Earnings were up but so too were P/E ratios. As the market climbed many warned that valuations had become unjustifiably high. With the S&P 500 down nearly 20%, P/E ratios have returned to their historic average leaving many
Download Memo as PDF Looking Back Too often financial market analysis is focused on the issue de jour – jumping from hot topic to hot topic with little reference to what was said in the past. Breaking from this tradition, this quarterly memo takes stock of what we have said in the past to provide perspective
Congrats to Senior Advisor Prof. Bradford Cornell, who along with co-author Prof. Ivo Welch, have released a new book, Global Climate Change. Global Climate Change provides a comprehensive, data driven analysis of climate change from an economic perspective. It provides a pragmatic analysis of the economic challenges and tradeoffs that must be confronted as part of the
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