What would be really interesting to look at is what effect the a company's "fair market value" (FMV, which is an "opinion") has on the company's actual market value (AMV) at a specific point in time. Does that AMV rise to meet its "FMV"? Or does the latter keep getting adjusted down? Does the magnitude of the difference between the FMV and AMV have an effect on the rate at which the AMV rises to the FMV (or declines if the FMV < AMV)? Would this show how useful FMV really is as an evaluative tool?
Missing from the discussion arounds bonds is the effect of inflation. While there has been some recent indication that inflation may be moderating, it is still well north of 7%. That number needs to be subtracted from any return you are expecting from bonds. And since no investment grade bonds are yielding anywhere near 7%, anyone buying a bond right now is taking a hit right out the door. Or in simpler terms, people buying bonds in mid November of 2022 are all paying someone for the privilege of lending them money. IMO that's not an attractive investment model. YMMV.
What would be really interesting to look at is what effect the a company's "fair market value" (FMV, which is an "opinion") has on the company's actual market value (AMV) at a specific point in time. Does that AMV rise to meet its "FMV"? Or does the latter keep getting adjusted down? Does the magnitude of the difference between the FMV and AMV have an effect on the rate at which the AMV rises to the FMV (or declines if the FMV < AMV)? Would this show how useful FMV really is as an evaluative tool?
Missing from the discussion arounds bonds is the effect of inflation. While there has been some recent indication that inflation may be moderating, it is still well north of 7%. That number needs to be subtracted from any return you are expecting from bonds. And since no investment grade bonds are yielding anywhere near 7%, anyone buying a bond right now is taking a hit right out the door. Or in simpler terms, people buying bonds in mid November of 2022 are all paying someone for the privilege of lending them money. IMO that's not an attractive investment model. YMMV.