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0 pointsRC_ITR4y ago0 comments

Yeah, I mean, talk to any stock-picking hedge fund and ask them how much the 10Y treasury yield factors into their discount rate (I'd say not a single one would say it does at all).

Classic HN 'Confidence = knowledge' comment.

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recursivedoubts4y ago

i know my gp comment reads w/ a lot of confidence, but I really have no idea what's going to happen

I do believe that even stocks, in the long run, will be discounted against a general opportunity cost and that really low interest rates make small movements really significant in that regard

we'll see

RC_ITROP4y ago

The part you're missing is the 'Equity Risk Premium' which historically has behaved independently of the risk-free rate.

https://learn.robinhood.com/articles/5FDKWbZjnNFHfEPYRNhLtE/...

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