Prof G Markets Country Risk, Tech Valuations, & How the Markets Lost their Predictive Power — ft. Aswath Damodaran
163 snips
Aug 8, 2025 
Aswath Damodaran, a Professor of Finance at NYU's Stern School of Business, shares his insights on America’s evolving country risk and the reactive nature of today's markets. He delves into the AI hype surrounding tech valuations, critiques the notion of finding 'the next Amazon,' and discusses the implications of Bitcoin as a treasury asset. Damodaran also highlights the challenges posed by the broken IPO pipeline and how private markets are reshaping capital access, emphasizing the need for a long-term investment perspective.
AI Snips
Chapters
Books
Transcript
Episode notes
U.S. Country Risk Continuum
- The U.S. has transitioned from a 'safe' country to one with notable country risk since 2008.
- This continuum of risk now affects nearly all nations, making truly safe investments rare.
Markets Abandon Predictive Role
- Markets have shifted from trying to predict the future to being reactive to actual data.
- This reactive stance arises because traditional economic predictions have often failed in recent decades.
Google’s Skeptical Market Valuation
- Google’s diversification bets were cash drains for years, causing market skepticism.
- Despite recent growth, investors price Google conservatively due to past unmet expectations.
