A.I.M. Users Bulletin Board

[karw]

Hi Bernie,

There is another reason for me to go to monthly updating:

I am just reading 'Expectations Investing' (website www.expectationsinvesting.com) which is about stock valuation. It is based on discounting expected cash flows. It is not calculating a stock price, but uses the stock price to see what the expectations are of the market.

The authors make a very good case that market prices reflect long-term cash-flow prospects. As expectations shift, so do the stock prices.

A monthly update period is much better tuned to this shifting of expectations, often more than 10 years of cashflow, sometimes 30 years! It seems to me that one is more in tune with the market with monthly updating. Maybe a month is "infinitesimal" compared to many years of cashflow. Updating daily is really just playing within 'noise levels'.

Regards, K

PS If moving to monthly updating is capitulation, the stock market should go up!