When I teach class, I feel like a fraud. I’m supposed to know what I’m doing and be able to help them learn tools that can make more sense of the world. The basic tools are easy, but anyone can pick those up online. Check out Khan Academy for Time Value of Money, or Net Present Value for examples.

Right now, with negative yields on German government bonds and European corporate bonds, stock prices through the roof and a lack of real economic reason for it, I have no idea what’s going on. If I don’t know how to make sense of this environment, if my tools don’t make sense, how can I teach them to my students? Especially with tuition where it is these days. Not easy to have value added at these rates.

If I told them what I really think they need to know, I’d tell them that nothing makes sense right now. I’d tell them that nearly every market is distorted and what you really need to do is follow the money. The world we know is rapidly crumbling, and what’s coming in its place is weird and scary, and who knows how everything is going to shake out?

But of course, I’m not going to. I’ll go in Monday morning and teach them the Gordon Growth Model of stock valuation, and find an example that shows it makes sense. What else can I do? I’m not sure… but I’m searching for the answer.