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Ep. 868: Peter Linneman Interview with Michael Covel on Trend Following Radio

Michael Covel's Trend Following

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The Stock Market's Perpetuality Value

The stock market is supposed to be the perpetuity value of future cash streams. At a high discount rate, the future doesn't matter because it's all about the present. Greed swung to fear in the discount rate and said, I don't care about the future. That's the huge drop you saw instantly in the stock market instantly. The values are not so different than about three years ago.

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