Brad DeLong's Website: Why Capital Gains Are Likely to Lag Economy-Wide Growth: "Why stock-index earnings growth lags economy-wide profit growth--and why, with a constant P/E ratio and a constant profit share in income, real GDP growth is likely to average 1% per year more than the (non buyback-induced) capital gains on a diversified stock portfolio."
This is a lovely comment by Brad on the relation between earnings growth and GDP growth and how even a complete diversification will miss out on the returns to future entreprenurship.
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