Banking Market Capitalization Risk-free Rate 
Musings on Markets
JANUARY 27, 2022
Interest Rates and Inflation Inflation and interest rates are intertwined, and when their paths deviate, as they sometimes do, there is always a reckoning. Put simply, no central bank, no matter how powerful, can force market interest rates down, if inflation expectations stay low, or up, if investor are anticipating high inflation.
Musings on Markets
JANUARY 19, 2022
In a post at the start of 2021 , I argued that while stocks entered the year at elevated levels, especially on historic metrics (such as PE ratios), they were priced to deliver reasonable returns, relative to very low risk free rates (with the treasury bond rate at 0.93% at the start of 2021).
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Musings on Markets
JANUARY 21, 2023
No matter how you slice it, there is no denying that 2022 was the worst year for US equity investors since 2008, and the magnitude of the damage is even more staggering, if you consider it in market value terms. trillion in market capitalization, but for balance, it is also worth noting that US equities are still holding on to a gain of $6.9
Musings on Markets
MARCH 25, 2021
The first is that the Fed Funds rate is currently close to zero, limiting the Fed's capacity to signal with lower rates. for the year are at war with its concurrent promise to keep rates low; after all, adding those numbers up yields a intrinsic risk free rate of 8.7%. for 2021 and inflation of 2.2%
Musings on Markets
FEBRUARY 6, 2025
It is for this reason that I chose to compute returns differently, using the following constructs: I included all publicly traded stocks in each market, or at least those with a market capitalization available for them. I converted all of the market capitalizations into US dollars , just to make them comparable.
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