#63 Reflections on Investing : Are Investors Creating Wealth or Transferring It?
The ultimate source of wealth from financial investments comes from the transfer of funds to entities that invest in the production of real goods and services.
The Implied Equity Risk Premium and Stock Market Bubbles
The implied equity risk premium (IERP) and theories of stock market bubbles both offer explanations for the current elevated level of stock prices, but they are strange bedfellows. Here we explore the relation between the two, starting with the implied…