The Top 10 Risks to the Stock Market (EP. 419)

114 snips

Jul 2, 2025

Michael and Ben explore the hypothetical risks that could impact the stock market, including the rise of AI and the potential housing market correction. They highlight recent all-time highs in global markets and discuss investor sentiment amid volatility. The effects of inflation on fast food prices spark a lively debate, while the growing influence of AI on financial advising is examined. Humorous anecdotes about modern communication challenges add a light touch to the conversation around serious investment topics.

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INSIGHT

Stability Breeds Instability Risk

The idea of never having another recession prompts reflection on what eventually disrupts market stability.
Excessive stability can breed unnoticed risks, leading to a Minsky moment where instability erupts.

INSIGHT

AI Bubble as Top Market Risk

Anticipated market risks include a potential AI bubble bursting that could end the bull market.
Current market narratives often fill waiting periods with speculation rather than grounded analysis.

INSIGHT

Death of the Perma-Bears

The perma bear market narrative has lost credibility after repeated failed predictions.
Investors now tend to dismiss perennial bearishness due to its track record.

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On episode 419 of Animal Spirits, ⁠⁠⁠⁠⁠⁠⁠Michael Batnick⁠⁠⁠⁠⁠⁠⁠ and ⁠⁠⁠⁠⁠⁠⁠Ben Carlson⁠⁠⁠⁠⁠⁠⁠ discuss recession hypotheticals, all-time highs in the stock market, the death of the permabear, international outperformance, a crashing dollar, the automatic investing revolution, yield magicians, fast food price inflation, AI vs financial advisors, the potential for a housing market correction and more!

This episode is sponsored by Vanguard. Learn more at: https://vgi.vg/3GbOsYM

Find complete show notes on our blogs:

Ben Carlson’s ⁠⁠⁠⁠⁠⁠⁠A Wealth of Common Sense⁠⁠⁠⁠⁠⁠⁠

Michael Batnick’s ⁠⁠⁠⁠⁠⁠⁠The Irrelevant Investor⁠⁠⁠⁠⁠⁠⁠

Feel free to shoot us an email at ⁠⁠⁠⁠⁠⁠⁠animalspirits@thecompoundnews.com⁠⁠⁠⁠⁠⁠⁠ with any feedback, questions, recommendations, or ideas for future topics of conversation.

Investing involves the risk of loss. This podcast is for informational purposes only and should not be or regarded as personalized investment advice or relied upon for investment decisions. Michael Batnick and Ben Carlson are employees of Ritholtz Wealth Management and may maintain positions in the securities discussed in this video. All opinions expressed by them are solely their own opinion and do not reflect the opinion of Ritholtz Wealth Management.

The Compound Media, Incorporated, an affiliate of ⁠⁠⁠⁠⁠⁠⁠Ritholtz Wealth Management⁠⁠⁠⁠⁠⁠⁠, receives payment from various entities for advertisements in affiliated podcasts, blogs and emails. Inclusion of such advertisements does not constitute or imply endorsement, sponsorship or recommendation thereof, or any affiliation therewith, by the Content Creator or by Ritholtz Wealth Management or any of its employees. For additional advertisement disclaimers see here ⁠⁠⁠⁠⁠⁠⁠https://ritholtzwealth.com/advertising-disclaimers⁠⁠⁠⁠⁠⁠⁠. Investments in securities involve the risk of loss. Any mention of a particular security and related performance data is not a recommendation to buy or sell that security. The information provided on this website (including any information that may be accessed through this website) is not directed at any investor or category of investors and is provided solely as general information.

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