We Study Billionaires - The Investor’s Podcast Network

TIP307: Cullen Roche on Stocks, Inflation, & COVID-19 (Business Podcast)

Jul 25, 2020

Cullen Roche, founder of Pragmatic Capitalism and seasoned financial expert, delves into the intricacies of today’s market conditions. He reveals the unique dynamics between inflation and growth versus value stocks. Cullen explains why inflation risks stem more from the Treasury than the Federal Reserve and discusses navigating international equity value. He provides insights on how investors can adapt strategies amidst ongoing volatility and explores the relationship between inflation, interest rates, and real estate prices.

57:48

Episode guests

Cullen Roche

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Quick takeaways

Cullen Roche emphasizes the importance of understanding the coexistence of centralized and decentralized currencies in today's financial landscape.

He argues that inflation risk is more likely influenced by government fiscal policy rather than directly by central bank actions.

Roche advises investors to adopt diversified strategies and consider alternative assets to navigate the current market volatility effectively.

Deep dives

Current Market Conditions and Trade Insights

The discussion highlights the current market landscape, focusing on equities and inflation. Colin Roach emphasizes the importance of understanding the balance between centralized and decentralized monetary systems. He suggests that the existing fiat-based system, particularly the US dollar, is likely to coexist with emerging decentralized forms of money like Bitcoin, as both have their unique advantages. This coexistence illustrates the complexity of navigating financial markets today and points to the need for strategic investment approaches.

Understanding the Fed: Banks for Banks, Not Money on the Streets

02:21

Control Your Costs for Greater Returns

01:31

Real Estate: Complexities Beyond Simplification

01:18

Intro

5min

Navigating Bitcoin and Inflation Dynamics

15min

Sponsors and Financial Insights

5min

Inflation's Impact on Stock Markets

11min

Inflation and Currency: Shaping Investment Strategies

10min

Navigating Market Challenges

11min

Understanding Real Estate Price Trends and Influencing Factors

4min

Cullen Roche talks about the current market conditions and various trade ideas for navigating this landscape.

Cullen has managed hundreds of millions of dollars for the past two decades. He is the founder of Pragmatic Capitalism, the author of multiple investing books, and a regular guest on Bloomberg and major financial news outlets.

IN THIS EPISODE, YOU’LL LEARN:

The main advantage of centralized currencies.
Why the risk of inflation is more likely to come from the Treasury than from the Federal Reserve.
Why growth stocks typically perform better in a low inflation environment and value stocks perform better in a high inflation environment.
Where to find value in international equities.
How should investors navigate the current market conditions?
Ask The Investors: What is the relationship between inflation, interest rates, and house prices?

BOOKS AND RESOURCES

Join the exclusive TIP Mastermind Community to engage in meaningful stock investing discussions with Stig, Clay, and the other community members.
Preston and Stig’s interview with Cullen Roche about contrarian investing.
Cullen Roche’s website, Pragmatic Capitalism.
Tweet directly to Cullen Roche.

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