Comment by danielmarkbruce
1 day ago
r dropping below g isn't "unwinding". r has been falling for decades now. The world is awash in capital.
1 day ago
r dropping below g isn't "unwinding". r has been falling for decades now. The world is awash in capital.
r>g, not r<g. In 2025 GDP grew 2.1% and SPY grew 17.7%, which is the pattern recently and throughout time.
Historically r>g, no one is debating that. It's the idea that it will just persist which is silly. Capital isn't immune to supply/demand.
And, r is the return on all assets, not just the s&p 500, and 1 year of returns means nothing...