Re: Stock Market EV
I guess the proper answer is the market in the us and basically every other country have been +EV because of economic growth. Basically every developed country is getting more productive and efficient each yr so weatlth is created and this is reflected in the market. That is why the general trend of the mkt in the very long run should be up.
i dont think high pe's could make the market - EV in the long run(long run is like 50 - 100 yrs). However it could cause a very long period of stock mkt decline.
Economists also theorize that generally people dont see some of the catostrophic risks. i.e. a war that destroys the whole nation, etc. but generally since the other effects of this would be so bad is not really that relevant.
so basically the market is +ev
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