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The Only Game in Town (EP.308)

Animal Spirits Podcast

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The Importance of Context in the Stock Market

Since the 1980s, it's all been disinflation and falling rates. Earnings haven't grown at all. This isn't some conspiracy theory or some conspiracy. American companies are really, really good at increasing their earnings year over year over year. And guess what drives the price of stocks? Earnings Yes. It's just like, I'm willing to admit the Fed and all these other things had an impact. But if there was a lever that you could pull that would make the stock market go up way more, every single politician would do it, right? To make people happier. Like it's just, it doesn't work like that.

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