investing has underperformed and lost so much favor with investors, especially over the last five to 10 years in your view? It's underperformed dramatically over the last five or 10 years and that's because we've just been in an unusual interest rate environment more than anything, in an unusual liquidity environment. When you have massive liquidity and when you have interest rates to the extent they are, historically you've always unfortunately had these periods like this. If you're a company and your cost of capital is 2%, you only need to make 3% to borrow capital. You get all of these inefficient companies that are out there that compete effectively with more efficient companies, more profitable companies. But really, we just had unusual amounts of liquidity in the system. Liquidity leads to speculation. You've also had a real lack of growth. Look at last year, I think the MAG7 in the United States, the earnings grew 36%, something along those lines. The other 493 companies, NSP (25/57)
You are viewing a single comment's thread from: