Comment by everforward
20 hours ago
> The main thing holding people back is the housing crisis. This is orthogonal to the value creation of businesses.
This feels wholly at odds with saying most social mobility is upwards. So most of the social movement is into a class where a home and vacations are a given, but we also have a growing class of people who can't afford a home? Per BLS, average real wages are down 0.3% YoY https://www.bls.gov/news.release/realer.nr0.htm .
> Value creation is growth. If it didn’t exist the S&P would still be 42.55$.
This reductively assumes "value creation" is the only effect on the S&P pricing. You'll note a ton of graphs correlate with it, e.g. https://tradingeconomics.com/united-states/inflation-cpi is the US inflation rate, which also tracks the S&P pricing. Ie if a company is worth $100 a year ago and inflation was 4%, I'd expect to pay $104 for their stock with 0 value creation whatsoever.
Home ownership is not the definition of economic class.
The s&p has vastly outstripped inflation, this isn’t even an argument. It’s a very bizarre and uninformed opinion to say “inflation is correlated with s&p value”.
In economics, you deduct the inflation rate from growth to get the real rate of return.
I wonder why so many people with such little understanding of financial markets make comments like these.
https://www.multpl.com/inflation-adjusted-s-p-500