Part 10/12:
Understanding whether assets are genuinely depreciating or maintaining value is crucial for investors and analysts alike. It emphasizes the importance of market signals—like demand, supply, and utilization rates—in assessing the accuracy of corporate financial reports.
For investors, this debate underscores the need to watch for signs of normalization. Indicators such as increased supply, decreased demand, or regulatory intervention can serve as early warning signs of a potential correction in asset valuation.