The Intrinsic Value Podcast - The Investor’s Podcast Network
MI369: The Anatomy of The Bear: Digging Through Financial History w/ Shawn O'Malley
Sep 16, 2024
In this discussion, Shawn O'Malley, an expert in financial history and bear markets, analyzes historic stock market downturns. He reveals the significance of studying past markets, especially the differences between the bear markets of 1921 and 1932. The podcast highlights how these events shaped today's financial practices and the role of the Federal Reserve. O'Malley discusses the causes behind the 1929 crash, the evolution of the stock market, and why investors should see bear markets as opportunities to uncover undervalued stocks.
01:08:42
Episode guests
AI Summary
AI Chapters
Episode notes
Podcast summary created with Snipd AI
Quick takeaways
- Understanding historical bear markets allows investors to make informed decisions and avoid repeating past financial mistakes.
- The 1921 market bottom exemplifies severe undervaluation despite economic growth, emphasizing how irrational market behavior can create buying opportunities.
Deep dives
Understanding Bear Markets
Bear markets and recessions are fundamental elements of the economic cycle, often lasting for years rather than being mere blips on a chart. Investors are encouraged to focus on the companies within their portfolios rather than solely worrying about macroeconomic trends, although ignoring broader trends altogether is unwise. Historical patterns show that past market bottoms were not due to a lack of capability among today's investors, signaling a cautionary inheritance of past mistakes. Understanding these patterns can equip modern investors to make informed decisions to avoid repeating the financial errors of previous generations.
Remember Everything You Learn from Podcasts
Save insights instantly, chat with episodes, and build lasting knowledge - all powered by AI.
