hi Maurice,
Mucho, I don't see a reason for an equity risk premium.
there are in fact many reasons, which have been revealed through several centuries of equity markets. if you are unaware of any of these reasons, you have my condolences.
in recent years, a number of forgettable writers have said there shouldn't be an equity risk premium (e.g., DOW 36K). these arguments were also common in other bubbles, which of course all ended badly.
each bubble breeds a mentality of hubris leading to the thought that "this time it's different".
A fiat currency, in the world of encrypted cyberspace and Q currencies, is like Wile E Coyote suspended in air over a cliff edge. A share-backed cybercurrency has the value of productive enterprise as its value.
i believe this argument is so wrong on the face of it, i won't even bother to dismantle it. if you truly believe this, then obviously there's nothing i can say that would persuade you otherwise, so i won't even try.
however, i might suggest you compare the trading volumes of fiat currencies with the volumes of stock "currencies". guess which group is larger by more than two orders of magnitude--add in volumes for transactions, and the imbalance is probably more like eight or nine orders of magnitude.
you might also consider what medium public companies use to transact the overwhelming majority of their business. |
