Bonds are having the biggest bear market since the 1700s in the long dated treasury bond market, right? Nobody wants to own long dated treasuries. I'm telling you right now, if you buy bonds now and put them in your account in 10 years, not only will you make money on it, but you're going to have a nice rate of return over time. In late 2020, we were talking about buying oil stocks because nobody wanted to own oil stocks because of climate change,. And energy stocks were the anathema of the market. These things are deeply undervalued and they're going to give you a great return.
IN THIS EPISODE, YOU’LL LEARN:
09:18 - Understanding the basics of valuations and how to interpret price multiples.
17:00 - What the Shiller P/E (CAPE) ratio is, and why it is telling us future returns are expected to be low going forward.
25:46 - What Lance thinks are some catalysts that could cause the market to mean revert to historically normal valuation levels.
31:35 - Why the Buffett Indicator is a valuable valuation tool and why it is saying markets are overvalued today.
38:05 - The relationship between earnings and GDP and why EPS cannot grow faster than GDP in the long run.
49:50 - Why Lance thinks bonds are the best investment right now and what investment strategy he recommends.
And much, much more!
*Disclaimer: Slight timestamp discrepancies may occur due to podcast platform differences.
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