Musings on Markets

MAY 20, 2022

In my last post , I discussed how inflation's return has changed the calculus for investors, looking at how inflation affects returns on different asset classes, and tracing out the consequences for equity values, in the aggregate.

Price to Book 96

Price to Book Dividends Beta Equity 96

Musings on Markets

JANUARY 19, 2022

In a post at the start of 2021 , I argued that while stocks entered the year at elevated levels, especially on historic metrics (such as PE ratios), they were priced to deliver reasonable returns, relative to very low risk free rates (with the treasury bond rate at 0.93% at the start of 2021). The year that was.

Risk Premium 80

Risk Premium Risk-free Rate Start-ups Equity 80

Musings on Markets

JANUARY 8, 2022

Regional Breakdown My data sample for 2022 includes every publicly traded firm that is traded anywhere in the world, with a market capitalization that exceeds zero. It is also why I report only aggregated data on industries, rather than company-level data.

Risk Premium 91

Risk Premium Start-ups Market Capitalization Corporate Finance 91

Musings on Markets

JANUARY 21, 2023

While there are many events during 2022, some political and some economic, that one can point to as the reason for poor stock returns, it is undeniable that inflation was the driving force behind the market correction. In this section, I will begin with a deconstruction of stock returns in 2022 and the year's place in stock market history.

Equity 70

Equity Risk Premium Start-ups Dividends 70

Musings on Markets

JANUARY 17, 2024

Heading into 2023, US equities looked like they were heading into a sea of troubles, with inflation out of control and a recession on the horizon. Energy, one of the few survivors of the 2022 market sell-off, had a bad year, as did utilities and consumer staples. increase in market capitalization.

Risk Premium 77

Risk Premium Start-ups Equity Treasury 77

Musings on Markets

JANUARY 9, 2021

The second was that, starting mid-year in 2020, equity markets and the real economy moved in different directions, with the former rising on the expectations a post-virus future, and the latter languishing, as most of the world continued to operate with significant constraints.

Risk Premium 52

Risk Premium Market Capitalization Equity Start-ups 52

Musings on Markets

JULY 17, 2023

While this may seem perverse, the first step in understanding and assessing where we are in markets now is to go back and examine where things stood then. In my third post at the start of 2023, I looked at US treasuries, the long-touted haven of safety for investors. trillion below their values from the start of 2022.

Marketability 95

Marketability Risk Premium Start-ups Treasury 95