ThreeBearsBalanced11Feb2018_UseEvenSmaller-Edited
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using_discount_rates
[long_equity_returns] [using_discount_rates]

Having started out in the 1980s looking at investment performance in terms of returns, I have concluded that, on their own, discount rates are of little use for determining funding requirements for long-term financial structures. Yes, it took me a long time! Two principal points are that risk quantification is very poorly captured by scalars and that market prices have no predictive power. To deny that higher returns do reduce costs seems utterly bizarre. This is explored on discount rates, which I will continue to extend.