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Value Investing Professor Aswath Damodaran's One Big Worry For Stocks

March 12, 2013 | About:
Canadian Value

CanadianValue

207 followers


Damodaran doesn't think stocks are expensive, but he doesn't think they are cheap either.

He feels there are four reasons the recent optimism is justified:

- record amounts of cash flows

- robust earnings growth

- low interest rates

- risk premiums are coming down

And he has two main worries:

- possibility of rising interest rates

- there is always another macro crisis around the corner

He is especially worried about how fast interest rates could rise if the economy starts to heat up.

About the author:

CanadianValue
http://valueinvestorcanada.blogspot.com/

Rating: 3.0/5 (1 vote)

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