Animal Spirits Podcast

The Nothing Ever Happens Market (EP. 418)

9 snips
Jun 25, 2025
Investors seem unfazed by scary headlines, showing what some call 'market amnesia.' The hosts discuss the war's impact on stock performance and the surprising resilience of the job market. They also explore the rising cost of car ownership as younger buyers shift away from vehicles. Mark Zuckerberg's struggle with AI investments becomes a focal point, while baby boomers are reluctant to sell their homes. The conversation spills over into alternative investments, credit card perks, and even nostalgic movie memories.
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INSIGHT

Market Amnesia Is Positive

  • The market shows amnesia by ignoring many world-changing events.
  • Historically, such events cause less return volatility than expected, helping long-term investors.
INSIGHT

Earnings Drive Market Focus

  • Current market ignores geopolitical risks because earnings growth drives stock prices.
  • In slow-growth or stagflationary environments, market reactions would be much more negative.
INSIGHT

Market Bullish Despite Wars

  • Historically, wars have coincided with bullish stock markets, counterintuitively.
  • The market acts emotionally detached from geopolitical crises like wars.
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