I am on with Ben Carlson and Ben and I going to talk about this post I wrote and the gist of it and we'll link to it but the gist of it is that

value stocks have underperformed for 10 years and my take on one of the major reasons why is that

capital has been so inexpensive that new companies have been able to

able to raise money easily come along and be extremely disruptive

to incumbent businesses that have all of these physical assets like plants and

facilities and employees and office space but they've just been completely

blindsided and what that's done in the stock market is it's

favored recurring revenue asset like business models that are now the biggest market caps in

the world and it's been very negative for companies

that have spent the last 50 years building up the things that appear in book value for example then would you say I'm describing

yeah and in your your description is interesting and I want to take it like one step further

because I think it's the question you asked and you said that you

went to a dinner with William Bernstein and went on the table and asked well what is the one thing

that no one's really thinking about and he said what happens if the cost of capital never rises again.

This is something I've thought about before.

So you put it in terms of value and growth, and I think you're obviously right, but my question

is, let's say he is right from here what does that mean going

forward so there isn't there is precedent for this so I looked from

1924 to 1959 the 10-year never really got out of a 2 to 4% range.

So let's say the last 10 years of interest rates does sort of go forward for another few decades.

What does that mean to the economy?

Wait wait, wait, wait, wait wait the 10 year yield was trapped between 2 and 4

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