> These companies have valuations
By the time we're reading headlines about this debt, it has been known to institutional investors for a long time.
The debt is priced into the valuation.
By the time we're reading headlines about this debt, it has been known to institutional investors for a long time.
The debt is priced into the valuation.
1. It's widely known that Spacex is overvalued. How is it possible for it to be widely known, and yet still overvalued? Either it is fairly valued, or these issues are _not_ already priced in.
2. If people read Enron's filings, they could have been aware of the shady reporting, and should have seen the reduction in price coming. But clearly most did not! Enron persisted for a long time despite shady tactics, that essentially were happening "in the open" if you dug into the paperwork.
3. The same argument can be made about housing loans during 2008, the dot com boom in 2000, and the response to covid in 2020
If you're interested I have much more to say on the topic! It's fascinating and I've only recently been convinced that the efficient market hypothesis is untrue (or at least it is suspect). I also highly recommend any of patrick boyle's videos, he makes great content often touching on this topic.
disclaimer: I'm not an expert in this industry, or really in this industry at all. I just like learning about it.
Here is the link (oddly I could not find it with HN Search): https://news.ycombinator.com/item?id=48917135
No need to worry or discuss further, it’s all priced in! Everything’s totally fine!!