Damodaran on Macro

Discuss all general (i.e. non-personal) investing questions and issues, investing news, and theory.
Post Reply
Topic Author
betablocker
Posts: 504
Joined: Mon Jan 11, 2016 1:26 pm

Damodaran on Macro

Post by betablocker » Tue Jan 08, 2019 10:31 am

This is a good summary of how interest rates and equities played out this year. The basic conclusion is that the bond market recalibrated in Q4 but most likely over calibrated. http://aswathdamodaran.blogspot.com/201 ... -from.html

User avatar
nedsaid
Posts: 12534
Joined: Fri Nov 23, 2012 12:33 pm

Re: Damodaran on Macro

Post by nedsaid » Sun Jan 13, 2019 12:56 am

Yes, I did notice how strongly bonds rallied late in the year. Stocks briefly went into bear market territory only to rally after Christmas. Stocks were anticipating slower earnings growth, the always pessimistic bond ghouls were expecting a slower economy if not an outright recession. You could see the yield curve flatten too, a classic bond market prediction of a slow economy. We didn't see the dreaded inversion.
A fool and his money are good for business.

Post Reply