The real question is, is this a new normal or is the market discounting the future price of gold?
FORBES: Mining Share Weakness Could Have Many Reasons -- Midas Fund
The market is a discounting machine on what the future brings.
With higher interest rates, the discounting reduces the present value of those future income (or psychic benefit) streams.
And I don't think it makes any sense to punish a company that has lost money in its -- for its tax purposes, as Citi has, by discounting the use of those future losses.
Vahan and his team do the hard work of discounting future cash flows of all stocks that meet their screening criteria.
In the long-term, however, market valuations should reflect the fundamentals of discounting a stream of future cash flows.
FORBES: How Many Economists Does It Take To Change A Light Bulb?
Fundamentally, the high volatility means investors are discounting extreme future scenarios and baking that analysis into their daily trading activity and their view of security prices.
It calculates an intrinsic value by discounting a stream of future earnings back to the present, using a discount rate that is a function of both Aaa bond yields and the creditworthiness of the target company.
"We are not discounting additional support at scrum-half in the future if it is required but, should this be the case, it would almost certainly be in a role to assist with the development of both Mike Phillips and Rhys Webb as well as providing playing support, primarily in the Magners League, " Hore added.
One of the biggest problems in personal finance is a phenomenon that behavioral economists call hyperbolic temporal discounting, which is basically a fancy term for our tendency to sacrifice the future to live for today.
We humans are subject to hyperbolic discounting, not taking full account of long distant future costs for current pleasures, sometimes those running the public health system really do know more than us, there are externalities associated with these behaviours (late night drunks, passive smoking and the visual pollution of someone 300 lbs overweight perhaps).
FORBES: Alcohol, Obesity and Smoking Do Not Cost Health Care Systems Money
At the heart of Buffett's simple but highly effective strategy is having the discipline to recognize when the market is not properly reflecting the true long-term value of a particular business, which can be calculated by discounting its likely future cash flows at an appropriate discount rate.
应用推荐