Whyconomy
Understand economics by starting with why.
Question index
Does Smarter AI Justify Bigger Investment?
AI models are arriving faster while the cost of building them keeps rising. The link between model capability, durable value, and cash flow is less direct than the headlines suggest.
Learn · Markets · Tech··6 min readWhy Does PER Matter?
The price-to-earnings ratio shows how the market is pricing a company’s earnings and future expectations. A high or low PER alone cannot tell us what a business is worth.
Learn··5 min readWhy Do Rates Affect Stock Prices?
Higher rates reduce the present value of future cash flows. Companies respond differently because the timing of their cash flows and their growth expectations are not the same.
Learn · Markets··5 min readWhy Apple Keeps Buying Back Its Shares
Apple uses its cash to buy back shares, linking cash generation and capital allocation to value per share. The decision also reveals what management believes its own shares are worth.
Companies · Tech··1 min read
Topics