alt Hacker NewsHow would going leveraged on the S&P 500 because they expect long term rapid GDP growth help them with short term cash flow to invest in AI training that will enable that rapid GDP growth?
How would going leveraged on the S&P 500 because they expect long term rapid GDP growth help them with short term cash flow to invest in AI training that will enable that rapid GDP growth?
Because the market is forward-looking, and brings all future cashflows to the present.
If it became clear by 2027 that GDP growth would permanently reach 15% (I didn't make that absurdly stupid chart, they did), S&P 500 valuations would immediately 100X or more.
They could take out a credit line against those gains and have unlimited money.
Wait...are you suggesting those predictions might be so unrealistic that its stupid to even publish them? I'm shocked!