Cornell Capital Group’s Economics Blog. Brad Cornell teaches financial economics at the California Institute of Technology.
Abstract: The performance of Renaissance Technologies’ Medallion fund provides the ultimate counterexample to the hypothesis of market efficiency. Over the period from the start of trading in 1988 to 2018, $100 invested in Medallion would have grown to $398.7 million,…
https://www.valuewalk.com/2020/01/big-market-delusion/ Soon after its introduction as a private company, the market value of Uber began to explode. One reason was the potential size of the market. Uber was billed not only as a potential global ride sharing company, but as…
The public debate regarding climate change rages daily in the popular press and in the halls of Washington. This report takes a different tack and focuses on the investment implications of what we call the great transformation away from reliance…
You often hear that as part of a restructuring to improve its financial position, a company plans to sell assets. GE is a focal point of such discussion currently and the company has sold off some divisions. But before you…
The total market value of a company can be divided into two parts: the fraction of due to current and short-run foreseeable operations and everything else. Financial economists have used the term “growth options” to…
A company is never so good or a situation so favorable that it cannot be overpriced. In my view, that is our situation today. The pricing of many companies and the market generally suggests a bubble. The questions are why…