Inside the Rope with David Clark Ep 184: John Hempton - Market Madness & Future Opportunities: Investing in Uncertain Times
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Nov 25, 2024 John Hempton, CEO and co-founder of Bronte Capital, brings his sharp insights on the chaotic financial landscape. He discusses the irrational behavior of markets, the influence of Trump-era policies, and the speculative boom of trades like GameStop and Bitcoin. John emphasizes the need for nuanced investment strategies amid volatility and risk management. Additionally, he explores the impact of AI on job markets and highlights opportunities in undervalued European stocks. His blend of wisdom, strategy, and humor makes navigating uncertainty more accessible.
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Bronte's Rough Patches
- John Hempton describes two difficult periods for Bronte Capital.
- One was around Valentine's Day 2021, the other is ongoing, marked by irrational markets.
Benchmark Suitability
- Benchmarks like the S&P 500 don't suit all investors.
- Institutions with large, pro-cyclical drawdowns could face bankruptcy using such benchmarks.
Timing the Market
- Focus on when you make money, not just how.
- A dollar earned during a market downturn buys more than one earned at a peak.