Capital valued by reference transactions
Stock market values are based on expected future earnings -- hopefully growing. The expectation of rapid growth drives a stock's P/E ratio skyward, amplifying an increase in cash earnings many times in the market cap value of the stock. Losses quickly pop this bubble.
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Compression Thinking »Compression Thinking
Compression vs. Expansion Thinking »Compression vs. Expansion Thinking
Expansion Economics »Expansion Economics
Systems Based on Markets »Systems Based on Markets
Capital valued by reference transactions
Emotional economics »Emotional economics
Ephemeral markets »Ephemeral markets
Valuing what didn't happen »Valuing what didn't happen
Real estate appraisals (for example) »Real estate appraisals (for example)
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