Wall Street – A genius Wall Street analyst at a top hedge fund just realized that every stock in the market is a multi-bagger if he uses a 1% discount rate in his DCF model. We were told the analyst shot out of his chair and screamed in excitement when he found out every stock in the market is a multi-bagger when applying a 1% discount rate. The analyst then proceeded to tell his portfolio manager how they needed to ‘load the up’ on some exchange traded funds (“ETFs”). ETFs are an investment fund on stock exchanges that hold assets such as stocks, commodities and bonds. They are an easy way to get exposure to a broad variety of assets. The portfolio manager recently put out his Q4 investment letter telling his partners how his fund has switched from an active manager to a passive manager in ETFs to get exposure to the entire market. “We just realized every stock in the market is a multi-bagger when using a 1% discount rate and we don’t want to miss out on the potential rally when all find out about his arbitrage.” The Dow railed 40 basis points upon the news that every stock is a multi-bagger with a 1% discount rate. The S&P 500 fell 90 basis points because sometimes stocks go up and some times stocks go down.