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The Fed's Inflation and the Stock Market
The Federal Reserve essentially was caught off guard, just the sheer amount of inflation that we've seen. It's an 18-month lag before interest rates really start to bite the economy. This has been a recession that analysts have been calling for two years. In our models, we're slightly underweight stocks, but it's been incredibly fascinating three years.
Clay Finck chats with David Stein about current market conditions, the role of international stocks in a portfolio, whether investors should get exposure to AI stocks or not, if GDP is an outdated metric, the role of alternative assets in a portfolio, and David’s guide to living a richer, wiser, and happier life.
David Stein is the Host of Money For the Rest of Us, a weekly personal finance podcast with over 20 million downloads. He’s also the co-founder of Asset Camp, a fintech platform of dynamic data-driven research tools focused on asset classes.
IN THIS EPISODE, YOU’LL LEARN:
00:00 - Intro.
02:10 - Why we should care about current market conditions as long-term investors.
09:27 - David’s assessment of current market conditions and the Fed’s job in managing inflation.
13:08 - How long it takes for interest rates to flow through to the broader economy.
16:49 - The role international stocks can play in a portfolio.
26:47 - If investors should care if the US has the reserve currency or not.
33:28 - Ways in which investors can get exposure to AI.
38:41 - The potential long-term impacts of AI on our financial system.
42:09 - Whether GDP is an outdated and misleading metric or not.
46:42 - The role that crowdfunding platforms and alternative assets can play in a portfolio.
55:51 - How the venture capital playbook works.
58:28 - How David thinks about the expected returns for alternative assets.
75:00 - David’s thoughts around aligning his finances with living a good life.
Disclaimer: Slight discrepancies in the timestamps may occur due to podcast platform differences.
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