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by denton-scratch 1112 days ago
> So what happens in practice is that investors capitalize income by keeping one eye on capitalization itself.

Is it right that this long essay is saying (roughly) that share prices are not really related to future earning expectations, but to future share price expectations? Well, blow me down with a feather. I'd never have guessed that stock markets were mainly about speculation.

1 comments

The value of everything is speculation
Wait till you find out that the dollar is also made up.
Used to be backed by gold. How many cows per kilo of gold? Made up too.