Consider the components of equity returns This is an infinitely interesting graph and also speaks to the profound effects of leverage on the returns of the past 20 years. Seeing as much of that dividend growth was a function of leverage fueled securitization, m&a and the rest of it. Makes you wonder if it’s possible for us to live successfully in a delevered world. I know that we cannot abide the wall street madness, but I also know that 2% capital growth is not enough. Perhaps the answer is that as the network economy develops and the efficiencies of the network take hold we will see a flip flop of capital growth and dividends. Where perhaps our profit margins aren’t so fat that we’re throwing off big dividends, but the inexorable growth of our networked economy drives a rapid increase in our capital base. I have no idea, just thinking out loud.

Consider the components of equity returns

This is an infinitely interesting graph and also speaks to the profound effects of leverage on the returns of the past 20 years. Seeing as much of that dividend growth was a function of leverage fueled securitization, m&a and the rest of it. Makes you wonder if it’s possible for us to live successfully in a delevered world. I know that we cannot abide the wall street madness, but I also know that 2% capital growth is not enough.

Perhaps the answer is that as the network economy develops and the efficiencies of the network take hold we will see a flip flop of capital growth and dividends. Where perhaps our profit margins aren’t so fat that we’re throwing off big dividends, but the inexorable growth of our networked economy drives a rapid increase in our capital base. I have no idea, just thinking out loud.