Animal Spirits Podcast Are We Sure a Recession is Coming? (EP.263)
Jun 29, 2022
The podcast dives into the uncertainty surrounding recession predictions and the impact of market fluctuations on stock and commodities. It examines the surprising resilience of consumer spending despite rising prices. There's a humorous twist as the hosts share amusing anecdotes about cable negotiations and quirky food preferences. The discussion also touches on the chaos in the cryptocurrency market, exploring the reasons behind its crash. Expect insightful analysis interspersed with light-hearted banter about personal investment experiences.
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Episode notes
Bear Market Behavior
- In bear markets, investors often overreact to daily or weekly market fluctuations, treating each as a decisive event.
- They seek definitive signs of a recession or recovery, interpreting short-term movements as long-term trends.
Commodity Sell-Off
- Commodities are experiencing a sell-off, potentially indicating an expectation of decreased demand due to rising interest rates.
- This could be a market attempt to front-run the Fed's actions and anticipated economic slowdown.
Tech Stocks in Value Territory
- Several large-cap tech stocks, including Facebook and Netflix, have been added to the Russell 1000 Value index.
- This shift is due to their significant price declines, making them appear undervalued relative to their growth counterparts.
