But I think that there’s no magic to evaluating any financial asset. A financial asset means, by definition, that you lay out money now to get money back in the future. If every financial asset were valued properly, they would all sell at a price that reflected all of the cash that would be received from them forever until Judgment Day, discounted back to the present at the same interest rate. There wouldn’t be any risk premium, because you’d know what coupons were printed on this “bond” between now and eternity. That method of valuation is exactly what should be used whether you’re in 1974 or
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