[Page 6]... The value will be independent of other market forces, the stock market, interest rates, housing prices, currency exchange rates and elections ...
I am reluctant to trust a model that predicts that any asset class with no income stream (no interest, no dividends, no rent, just bubbles) is immune from interest rates.
Today, a U$D 100,000 FDIC-protected CD would give you U$D ~200 every month, month after month.
Not much, to be sure, but at least you don't have to pay the bank a U$D 10,000 commission for the privilege of cashing it in.
Let real interest rates rise a bit, and watch what happens to all of the assets that offer risk, fee-laden liquidity, and no income stream.