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Even at insane growth multiples there's plenty of high/mega caps on the SP500 that will never, ever return investors the money that simple bonds will, you're paying way too much for way too little (future) cash flows and book.

There's many companies that have their revenues flat or falling from quite some time which are still priced for insane future growth. Go figure.



Well the problem there is that you don’t know which companies will pay better than bonds and which ones won’t.

Haven’t run the numbers, but I assume that you could take the S&P 500 over whatever timeframe you want, remove all the stocks that didn’t outperform bonds, and be left with a basket of stocks that wildly outperforms the actual S&P 500.


> Well the problem there is that you don’t know which companies will pay better than bonds and which ones won’t.

And that uncertainty should be priced in with a risk premium, the risk premium is nowhere to be seen.




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