Tuesdays are all about academic (and practitioner) literature at Abnormal Returns. You can check out last week’s links including a look at using the variance risk premium to help market time.

Quote of the Day

"Although applying a lower discount rate in a DCF raises the valuation, it assumes that cash flows are unchanged. Naturally, this is a flawed assumption and explains why there is no strong negative relationship between interest rates and equity multiples."

(Nicholas Rabener)

Chart of the Day

Long term investors in the U.S. have been spoiled.

(klementoninvesting.substack.com)