As we approach a cycle of interest rate cuts, some of the mispricing that resulted from the cycle of rate hikes is likely to be undone. We believe securities with high visibility and certainty of cash flows were properly discounted for higher rates. In contrast, securities with low certainty or visibility of cash flows seem to have become mispriced. This article will start from the relatively simple discounting math as it applies to bonds and use the concepts to apply it to equities. From there, we take not ...