Musings on Markets: Country Risk 2025: The Story behind the Numbers!
A blog about markets, finance and all things money related.| aswathdamodaran.blogspot.com
A blog about markets, finance and all things money related.| aswathdamodaran.blogspot.com
A few weeks ago, I started receiving a stream of message about an Instagram post that I was allegedly starring in, where after offering my views on Palantir's valuation, I was soliciting investors to invest with me (or with an investment entity that had ties to me). I was not surprised, since I have lived with imitations for years, but I was bemused, since I don't have an Instagram account and have not posted on Facebook more than once or twice in a decade. In the last few days, those warning...| Musings on Markets
A blog about markets, finance and all things money related.| aswathdamodaran.blogspot.com
A blog about markets, finance and all things money related.| aswathdamodaran.blogspot.com
A blog about markets, finance and all things money related.| aswathdamodaran.blogspot.com
A blog about markets, finance and all things money related.| aswathdamodaran.blogspot.com
A blog about markets, finance and all things money related.| aswathdamodaran.blogspot.com
A blog about markets, finance and all things money related.| aswathdamodaran.blogspot.com
A blog about markets, finance and all things money related.| aswathdamodaran.blogspot.com
When markets are in free fall, there is a great deal of advice that is meted out to investors, and one is to just buy the dip, i.e., buy beaten down stocks, in the hope that they will recover, or the entire market, if it is down. "Buying the dip" falls into a broad group of investment strategies that can be classified as "contrarian", where investors act in contrast to what the rest of the market is doing at the time, buying (selling) when the vast majority are selling (buying) , and it ...| Musings on Markets
I was boarding a plane for a trip to Latin America late in the evening last Wednesday (April 2), and as is my practice, I was checking the score on the Yankee game, when I read the tariff news announcement. Coming after a few days where the market seemed to have found its bearings (at least partially), it was clear from the initial reactions across the world that the breadth and the magnitude of the tariffs had caught most by surprise, and that a market markdown was coming. Not surprisingly, ...| Musings on Markets
I will start with a couple of confessions. The first is that I see the world in shades of gray, and in a world where more and more people see only black and white, that makes me an outlier. Thus, if you are reading this post expecting me to post a diatribe or a tribute to Trump, tariffs or Tesla, you are likely to be disappointed. The second is that much of my work is in the micro world, where I look at companies and their values, and the work that I do on macro topics or variables is to he...| Musings on Markets
A blog about markets, finance and all things money related.| aswathdamodaran.blogspot.com
There is a reason that every religion inveighs against borrowing money, driven by a history of people and businesses, borrowing too much and then paying the price, but a special vitriol is reserved for the lenders, not the borrowers, for encouraging this behavior. At the same time, in much of the word, governments have encouraged the use of debt, by providing tax benefits to businesses (and individuals) who borrow money. In this post, I look at the use of debt by businesses, around the globe,...| Musings on Markets
A blog about markets, finance and all things money related.| aswathdamodaran.blogspot.com
I am in the third week of the corporate finance class that I teach at NYU Stern, and my students have been lulled into a false sense of complacency about what's coming, since I have not used a single metric or number in my class yet. In fact, we have spent almost four sessions (that is 15% of the overall class) talking about the end game in business. In an age when ESG, sustainability and stakeholder wealth maximization have all tried to elbow their way to the front of the line, all laying cl...| Musings on Markets
In the first five posts, I have looked at the macro numbers that drive global markets, from interest rates to risk premiums, but it is not my preferred habitat. I spend most of my time in the far less rarefied air of corporate finance and valuation, where businesses try to decide what projects to invest in, and investors attempt to estimate business value. A key tool in both endeavors is a hurdle rate – a rate of return that you determine as your required return for business and investment ...| Musings on Markets
If the title of this post sounds familiar, it is because is one of Disney’s most iconic rides, one that I have taken hundreds of times, first with my own children and more recently, with my grandchildren. It is a mainstay of every Disney theme park, from the original Disneyland in Anaheim to the newer theme parks in Paris, Hong Kong and Shanghai. For those of who have never been on it, it is the favored ride for anyone who is younger than five in your group, since you spend ten minutes in a...| Musings on Markets
A blog about markets, finance and all things money related.| aswathdamodaran.blogspot.com
It was an interesting year for interest rates in the United States, one in which we got more evidence on the limited power that central banks have to alter the trajectory of market interest rates. We started 2024 with the consensus wisdom that rates would drop during the year, driven by expectations of rate cuts from the Fed. The Fed did keep its end of the bargain, cutting the Fed Funds rate three times during the course of 2024, but the bond markets did not stick with the script, and market...| Musings on Markets
In my first two data posts for 2025, I looked at the strong year that US equities had in 2024, but a very good year for the overall market does not always translate into equivalent returns across segments of the market. In this post, I will remain focused on US equities, but I will break them into groupings, looking for differences. I first classify US stocks by sector, to see return variations across different industry groupings. I follow up by looking at companies broken down by market capi...| Musings on Markets
A blog about markets, finance and all things money related.| aswathdamodaran.blogspot.com
A blog about markets, finance and all things money related.| aswathdamodaran.blogspot.com
I am a teacher at heart, and every year, for more than two decades, I have invited people to join me in the classes that I teach at the Stern School of Business at New York University. Since I teach these classes only in the spring, and the first sessions for each of the classes will be in late January, I think this is a good time to provide some details on the classes, including content and structure. If you have read these missives in prior years, much of what I say will sound familiar, but...| Musings on Markets
You might know, by now, of my views on ESG, which I have described as an empty acronym, born in sanctimony, nurtured in hypocrisy and sold with sophistry. My voyage with ESG began with curiosity in my 2019 exploration of what it purported to measure, turned to cynicism as the answers to the Cui Bono (who benefits) question became clear and has curdled into something close to contempt, as ESG advocates rewrote history and retroactively changed their measurements in recent years. Late last year...| Musings on Markets
In this, the first full week in November 2024, the big news stories of this week are political, as the US presidential election reached its climactic moment on Tuesday, but I don't write about politics, not because I do not have political views, but because I reserve those views are for my friends and family. The focus of my writing has always been on markets and companies, more micro than macro, and I am sure that you will find my spouting off about who I voted for, and why, off-putting, muc...| Musings on Markets
It is a sign of the times that I spent some time thinking about whether the title of my post would offend some people, as sexist or worse. I briefly considering expanding the title to "Sugar Daddies and Molasses Mommies", but that just sounds awkward, or even replacing the words with something gender neutral, like "Glucose Guardians", but very quickly passed on the idea, deciding to stay with my initial title. After all, I am too old to care about what other people think, and the type of p...| Musings on Markets
In a court filing on October 9, 2024, the US Department of Justice (DOJ) let it be known that it was considering a break-up of Alphabet, with the addendum that it would also be pushing for the company to share the data it collects across its multiple platforms with competitors. There is many a slip between the cup and the lip, and it is entirely possible that these are threats designed to extract more concessions from the company, but the break-up talk is a continuation of a debate about the ...| Musings on Markets
A blog about markets, finance and all things money related.| aswathdamodaran.blogspot.com
A blog about markets, finance and all things money related.| aswathdamodaran.blogspot.com
A blog about markets, finance and all things money related.| aswathdamodaran.blogspot.com
A blog about markets, finance and all things money related.| aswathdamodaran.blogspot.com
A blog about markets, finance and all things money related.| aswathdamodaran.blogspot.com
A blog about markets, finance and all things money related.| aswathdamodaran.blogspot.com
A blog about markets, finance and all things money related.| aswathdamodaran.blogspot.com
A blog about markets, finance and all things money related.| aswathdamodaran.blogspot.com
A blog about markets, finance and all things money related.| aswathdamodaran.blogspot.com
A blog about markets, finance and all things money related.| aswathdamodaran.blogspot.com
A blog about markets, finance and all things money related.| aswathdamodaran.blogspot.com
A blog about markets, finance and all things money related.| aswathdamodaran.blogspot.com
A blog about markets, finance and all things money related.| aswathdamodaran.blogspot.com
A blog about markets, finance and all things money related.| aswathdamodaran.blogspot.com
A blog about markets, finance and all things money related.| aswathdamodaran.blogspot.com
A blog about markets, finance and all things money related.| aswathdamodaran.blogspot.com
A blog about markets, finance and all things money related.| aswathdamodaran.blogspot.com
A blog about markets, finance and all things money related.| aswathdamodaran.blogspot.com
A blog about markets, finance and all things money related.| aswathdamodaran.blogspot.com
