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Value After Hours S05 E20: Jeff Weniger on Value v Growth, Housing, and the 70s Stock Market Crashes

The Acquirers Podcast

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The Effect of Government Deficits on Profit Margin

Toby Cevallos: Government deficits are what really were the difference in this time period for profit margins. Between 1950 and 2011, the federal deficit averaged just a little under 3% of GDP. In the last 10 years, it's averaged more than double this at 6.6%. He says if you think about normalizing profit margins, that would indicate that today's Cape is really more around 45 to 50 times.

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