2016 elections - because it's never too early

[Valmy]

A good investment that lowers the share price?

Yi's mind: blown

[DGuller]

Too far to go to unclench my buttocks

Here CdM, Hillary talking about shareholder value: https://www.facebook.com/businessinsider/videos/10153521312779071/

She asked her sample of CEOs a stupid question.  An investment that results in a drop in stock price is a bad investment.

That assumes that the market is rational.  There is at this point, to the best of my knowledge, an accepted wisdom that chasing short-term stock prices can result in decisions that are damaging in the long term, which also implies that the market isn't that rational.

[Admiral Yi]

That assumes that the market is rational.  There is at this point, to the best of my knowledge, an accepted wisdom that chasing short-term stock prices can result in decisions that are damaging in the long term, which also implies that the market isn't that rational.

I'm familiar with the narrative.  I'm less familiar with the empirical data that supports that narrative.

[dps]

Funny how the Clinton Foundation receiving cash from the Saudis is not news but this is.

I do not think that word means what you think it means.

Which word?  There are 16 of them in that sentence.  Well, actually, only 14 'cause 2 of 'em are used twice.

[The Minsky Moment]

That assumes that the market is rational.  There is at this point, to the best of my knowledge, an accepted wisdom that chasing short-term stock prices can result in decisions that are damaging in the long term, which also implies that the market isn't that rational.

I'm familiar with the narrative.  I'm less familiar with the empirical data that supports that narrative.

I think the point of the survey was not to make an empirical argument about EMH but rather to determine, if one assumes that hard EMH does not hold, whether executives would tend to privilege stock price over real return.

As for the empirical data, my understanding is that the more aggressive versions of EMH are not well empirically supported. In fact, I would consider the hypothesis to be so contrary to common experience that the burden of proof will rely on those seeking to establish the connection.

To give one example, in 2002 ebay acquired paypal for $1.2 billion, apparently because the CEO believed it would be a long-run accretive acquisition.  The markets strongly disagreed, and sent the stock down over $4 on the day (7 percent).

Last year, paypal was spun off at a valuation in the $50 billion range.

[Admiral Yi]

I think the point of the survey was not to make an empirical argument about EMH but rather to determine, if one assumes that hard EMH does not hold, whether executives would tend to privilege stock price over real return.

As for the empirical data, my understanding is that the more aggressive versions of EMH are not well empirically supported. In fact, I would consider the hypothesis to be so contrary to common experience that the burden of proof will rely on those seeking to establish the connection.

To give one example, in 2002 ebay acquired paypal for $1.2 billion, apparently because the CEO believed it would be a long-run accretive acquisition.  The markets strongly disagreed, and sent the stock down over $4 on the day (7 percent).

Last year, paypal was spun off at a valuation in the $50 billion range.

Pointing out examples of the market mispricing shares is not the same thing as proving a systematic underpricing of long term investment.

[Ed Anger]

I was a bit turned on by Trump's terror speech. My plan would be better though.

[CountDeMoney]

I was a bit turned on by Trump's terror speech. My plan would be better though.

There is much hatred in you, Sits On Hoveround.  Do not follow the way of the orange man, his mind has been made crazy and there is only darkness in his future.

[Ed Anger]

I feel like Anakin Skywalker being seduced by the Dark Side.

MUST VOTE THIRD PARTY!

[CountDeMoney]

Stop talking crazy talk.

[Ed Anger]

GMOS CAUSE AUTISM! HAIL JILL STEIN!

[Valmy]

GMOS CAUSE AUTISM!

[Ed Anger]

GMOS CAUSE AUTISM!

[Tonitrus]

Maybe it is just me, but content completely aside...Trump's canned/teleprompter speech delivery is terrible/dreadful/boring.

His off-the-cuff rally speeches may usually be crazy, but his impromptu delivery at least functions well.

[CountDeMoney]