BROADCASTS.com

When trying to find a culprit for the bear market in stocks this year, investors often point to the surging yields on U.S. Treasury bonds. But that\u2019s only part of the story. Today Jack is lucky to speak to Dr. Aswath Damodaran, professor of valuation and corporate finance at NYU Stern School of Business, who is a pioneer in the field of valuation. Damodaran explains how the intrinsic value of a stocks is its future cash flows discounted back to the present with a \u201cdiscount rate,\u201d which is the sum of a risk-free rate on a Treasury bond and an \u201cequity risk premium.\u201d Damodaran notes that, in addition to risk-free rates surging higher, equity risk premia have expanded significantly. Damodaran also shares his views on inflation, the Federal Reserve, as well as currencies and crypto. Farley aFilmed on September 9, 2022.\n\nData sets can be found on Aswath Damodaran\u2019s website: https://pages.stern.nyu.edu/~adamodar/\n\nLectures and presentations can be found on Aswath Damodaran\u2019s YouTube page: https://www.youtube.com/c/AswathDamodaranonValuation\n\n--\nFollow Aswath Damodaran on Twitter https://twitter.com/AswathDamodaran\nFollow Jack Farley on Twitter https://twitter.com/JackFarley96\nFollow Forward Guidance on Twitter https://twitter.com/ForwardGuidance\nFollow Blockworks on Twitter https://twitter.com/ForwardGuidance\n\nGet top market insights and the latest in crypto news. Subscribe to Blockworks Daily Newsletter: https://blockworks.co/newsletter/\n--\n\n--\n(00:00) Introduction\n(00:35) The "Sleep Test"\n(03:40) Inflation's Impact on Equity Valuations\n(19:43) Equity Duration\n(40:41) Cost of Capital for Individual Companies\n(44:17) Commodity & Energy Stocks\n(52:06) How Liquidity Increases Asset Values\n(59:53) Crypto, Currencies, and Commodities: Why They Are Impossible To Truly Value\n(1:11:29) Closing Thoughts On Overconfidence\n--\nDisclaimer: Nothing discussed on Forward Guidance should be considered as investment advice. Please always do your own research & speak to a financial advisor before thinking about, thinking about putting your money into these crazy markets.