#37 Reflections on Investing : The Discount Rate and the Future of the Stock Market

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 the current month at the link below.

https://pages.stern.nyu.edu/~adamodar/