This chapter explores the concerns about private equity in a low interest rate environment, discussing the impact of interest rate cuts and higher rates on investments. It highlights the challenges of valuing private equity companies and warns about the potential risks and damage that can occur in private equity ownership. The chapter also emphasizes the importance of considering long-term value in stock investments and cautions against relying on short-term strategies.
Ricky Mulvey caught up with Jules van Binsbergen, a finance professor at the University of Pennsylvania’s Wharton School, to talk about market sentiment, savings goals, and how to prepare for periods with lower rates of return. They also discuss:
- Disconnects between the real economy and financial markets,
- Whether the US stock market is merely a “lucky survivor,”
- And the dangers of institutional thinking – in investing and academia.
Tickers discussed: NOK, BTC
Host: Ricky Mulvey
Guest: Jules van Binsbergen
Producer: Mary Long
Engineer: Rick Engdahl
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