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Last week, $300 million flowed into crypto funds, the highest inflow in 18 months.
The Case-Shiller National Home Price Index reached a new all-time high, despite rates being at 8%. The highest level of new construction homes for sale was also recorded.
A federal jury found the National Association of Realtors and large brokers guilty of conspiring to keep costs artificially high. The verdict could lead to a 30% reduction in real estate commissions and push over half of the 1.6 million agents out of the industry.
Inflation is often seen as a threat to the stock market, but this podcast episode explains how companies can actually adapt to inflation by passing on the cost to consumers. This ability to raise prices protects them against inflation and helps maintain their profitability. In a sense, the negative impact of inflation on stock valuations is offset by the flexibility of companies to adjust their pricing power. This insight challenges the traditional view that rising interest rates and inflation should lead to a market crash. Instead, it emphasizes the resilience and adaptability of corporations in the face of economic changes.
A key driving force behind the stock market's growth is the insatiable human appetite for more wealth and prosperity. The podcast highlights how individuals constantly move their own goalposts, always wanting more even as they achieve significant financial success. This perpetual desire for more propels the stock market upwards as people continue to invest and strive for greater returns. The summary also acknowledges that this phenomenon, while somewhat sad on an individual level, is a vital contributor to the overall strength of the stock market and corporate America.
On episode 333 of Animal Spirits, Michael Batnick and Ben Carlson discuss: the cooling labor market, why the 60/40 portfolio looks more attractive now, why the Fed is in a tough spot, why everyone hates this economy, how to become a millionaire, realtor commissions, reclining your seat on a plane, and much more!
Thanks to YCharts for sponsoring this episode. Register for Michael and Ben's year-end wrap up at: https://ycharts.zoom.us/webinar/register/1316977225613/WN_ZwvEURfASPK06-zAxVKEWA
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.
Check out the latest in financial blogger fashion at The Compound shop: https://www.idontshop.com
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.
Wealthcast Media, 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.
Obviously nothing on this channel should be considered as personalized financial advice or a solicitation to buy or sell any securities. See our disclosures here:
https://ritholtzwealth.com/podcast-youtube-disclosures/
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