> company valuations are the discounted value of future returns after all.
Yes, future earnings are worth far less than current earnings - especially in a non-ZIRP world.
Yes, future earnings are worth far less than current earnings - especially in a non-ZIRP world.
It is only after stocks suffer severe shocks, does private equity spring into action, and discipline executives via the threat of acquisition & firings.
So its is actually executives that can be shortsighted, not an ultra-long-termist passive investment dominated US investor base.