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Animal Spirits Podcast

The Dumbest Trade War (EP.398)

Feb 5, 2025
The financial impact of tariffs sparks a lively debate, shedding light on their effect on consumers and trade relations. The duo explores bold market return assumptions for the next decade and how AI might just save the stock market. A surprising trend emerges—parents are now considering Bitcoin over traditional college savings plans. Plus, there's a humorous touch as they ponder aging and personal quirks like hiccups versus sneezing. All this while keeping an eye on shifting economic landscapes and the remodeling boom!
01:00:07

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Quick takeaways

  • The financial impact of tariffs is significant as they typically lead to higher consumer prices and potentially hinder economic growth.
  • AI's advancements are posited to stabilize and drive market growth despite the turbulence caused by tariff discussions.

Deep dives

Debunking Stock Recovery Myths

Fallen stocks do not always bounce back, as evidenced by several high-profile cases. For example, AIG is currently 96% below its all-time highs, Citigroup at 88%, and Walgreens has declined by 90%. The notion that investors can simply wait for a stock's inevitable recovery is misleading; historical data indicates that over 80% of stocks hitting new lows do not see a rebound. This reality challenges the common strategy of 'buying the dip' and emphasizes the necessity for more strategic, informed investing.

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