If you’re a finance person, you might recall the academic way of evaluating projects given cash flows and the cost of capital. While I have never seen strict application of this, it provides great logic. If the cost of capital is low enough, you do a lot of projects that you normally wouldn’t
Recently, I often hear from “investors” saying that fundamentals don’t matter anymore. To me, that is an indication of the rampant speculation going on in the market place. The “Jenga” tower is beginning to waver.
