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The Envy of the World (EP.383)

Animal Spirits Podcast

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Analyzing Market Returns and Downturn Catalysts

This chapter examines Goldman Sachs' projections for the S&P 500's nominal returns, predicting only 3% over the next decade while reflecting on historical instances of low returns during economic downturns. The discussion includes potential triggers for a market crisis, particularly focusing on the implications of the national deficit and the risks associated with AI investments. It emphasizes the importance of diversification and cautious sentiment in the current stock market landscape, contrasting it with past bull markets.

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