Animal Spirits Podcast

Tax the Billionaires (EP. 446)

75 snips
Jan 7, 2026
The hosts dive into fascinating predictions for 2026, tackling market risks and recession expectations. They unpack the surprising outperformance of international stocks against the backdrop of rising valuations. A lively debate on AI's impact on jobs and the hilarious quirks of AI hallucinations adds depth. Also, a firsthand robotaxi experience and reflections on Disney's stock performance keep things engaging. And who knew a discussion on cactus injuries could be so entertaining?
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INSIGHT

Margins Explain Higher Valuations

  • Profit margins and revenue per worker have surged and help justify higher stock valuations today.
  • Michael Batnick and Ben Carlson argue tech-driven efficiency means multiples may reasonably stay elevated.
INSIGHT

Market Rally Despite Rising Rates

  • Rates more than doubled while forward P/E barely moved, yet the S&P still doubled in that period.
  • Ben Carlson highlights that a handful of tech leaders and earnings growth powered much of the rally.
INSIGHT

Unexpected International Outperformance

  • International stocks outperformed US markets dramatically in 2025, driven by valuation improvements and earnings.
  • Ben Carlson notes this was the biggest US-investor outperformance for EFA since 1993.
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