The Federal Reserve is like, Oh my gosh, when's the Fed going to pivot? When are they going to go back to doing QE and cut interest rates? They don't see the market down 20% this year. But they look at it from a function of where were we in 2019, 2020 at the peak of the market before the market downturn there? Where are we today? And we'll see we're still up like 20% from those March 2020 peaks. So for the Fed, the wealth effect is still there. And for investors, they're still even with the decline. They're still at a higher level than they were just two years ago,. The annual rates
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.
BOOKS AND RESOURCES
Join the exclusive TIP Mastermind Community to engage in meaningful stock investing discussions with Kyle and the other community members.
Help us reach new listeners by leaving us arating and reviewon Apple Podcasts! It takes less than 30 seconds and really helps our show grow, which allows us to bring on even better guests for you all! Thank you – we really appreciate it!