The only thing I did not understand is... why are corporate profits at historic highs? Why are stocks returning much more than in the previous decades? Of course, companies are returning more cash, but what is the underlying reason for that? If Prof. Damodaran made a vide about the reasons for such high profits, I would really look forward to seeing it. Anyway, thank you for this video!
There was a pretty marked selloff in 2022 - Did corporates reduce the cashflow they returned to investors?! That will tell me how well this video has aged.
Well it's a pretty complex system. Quite thoughtful - but there's multiple interaction effects.. so for example, your point about record buybacks (hence high stock prices) is affected by the Fed ie that funding rates are partially low because of the Fed.. so swapping equity with debt makes sense to some level.
The only thing I did not understand is... why are corporate profits at historic highs? Why are stocks returning much more than in the previous decades? Of course, companies are returning more cash, but what is the underlying reason for that? If Prof. Damodaran made a vide about the reasons for such high profits, I would really look forward to seeing it. Anyway, thank you for this video!
Thank you for lesson Prof. Aswath..ATB
Revelatory and balanced view. TQ
There was a pretty marked selloff in 2022 - Did corporates reduce the cashflow they returned to investors?! That will tell me how well this video has aged.
Well it's a pretty complex system. Quite thoughtful - but there's multiple interaction effects.. so for example, your point about record buybacks (hence high stock prices) is affected by the Fed ie that funding rates are partially low because of the Fed.. so swapping equity with debt makes sense to some level.
Such an intelligent video!
interesting perspective. Thank you!
thank you for these educational videos , please keep them coming ..
thank you!
Still very relevant
Excellent
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