"A possible corollary: one should expect to see the phenomenon of fallen growth angels.
A fall in the perceived growth rate prospects will cause earnings to matter when they never did before."
…
Oracle of Monaco
I like it!
Maybe TMF will let me change my handle.
Of course, there isn’t much insight in this one…just a lot of syllables to say “What goes up must come down”.
At least, “what goes up too much”.
The insight in that post, if any, is my theory that lower market-wide WACC will cause not just rising valuations, but also wildly expanding dispersion of valuation multiples.
Jim