Aswath Damodaran: “World Order is Coming Apart” | Prof G Markets

This week on Prof G Markets, Scott Galloway and Ed Elson are joined by Professor Aswath Damodaran. They discuss the unraveling global order, unpack the “catastrophic risks” that are on his radar, and get his take on the software selloff. Plus, he breaks down whether he would prefer Anthropic or OpenAI in his portfolio.

Aswath Damodaran is the Kerschner Family Chair in Finance Education and Professor of Finance at NYU’s Stern School of Business.

You can read Aswath Damodaran's research on Musings on Markets here!
https://aswathdamodaran.blogspot.com/

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Timestamps:
00:00 Today’s number
00:32 Today’s episode
04:47 Interview with Aswath Damodaran
05:02 How has your position changed or not changed since we last spoke?
10:11 Will the correction be a function of a slowdown in the fundamentals of businesses or a sentiment multiple problem?
14:25 Have these software companies been oversold?
22:38 Ad Break
24:04 Have you looked into Anthropic and OpenAI and their respective valuations?
26:17 How do private market leaders reshape public market dynamics?
29:39 Is it too narrow to focus only on software and ignore broader geopolitical risks?
34:52 What signals have convinced you that risks are larger than they appear?
37:54 Is that not kind of an example of the outsourcing that you describe?
39:21 What are your thoughts on the dollar and how it intersects with different markets?
42:00 Ad Break
43:30 What is your view overall on a meta level of these prediction markets?
48:02 Would a simple S&P strategy have outperformed alternatives after fees in the 60s?
49:33 When do you trust the market’s signal and when do you doubt it?
53:25 Do you think the world will look different when Trump leaves office or do you think things have changed for good?
57:12 What are your views on higher education?
01:03:08 What’s your outlook for 2026?
01:04:11 Break
01:04:20 Conclusion
01:07:00 Credits

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