We Study Billionaires - The Investor’s Podcast Network TIP296: Current Market Conditions 9 May 2020 (Business Podcast)
May 10, 2020
Market conditions in May 2020 are chaotic with rising stock prices despite record unemployment. The hosts discuss the Federal Reserve's purchase of corporate bonds, highlighting economic disparities. They draw parallels to Japan's stagnation and explore the psychological effects on investors. The conversation includes insights on technology's role in navigating financial challenges and the potential for Universal Basic Income. Additionally, they evaluate stock picks like Biogen and the importance of diversification against market volatility.
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Intangible vs. Tangible Asset Performance
- Tech companies with intangible assets are outperforming those with tangible assets.
- This might be due to their adaptability to remote work.
Buffett's Observation on Fed Intervention
- Warren Buffett noticed a decrease in financing requests after the Fed started printing money.
- This highlights how market manipulation distorts economic calculation.
Using IRR in a Manipulated Market
- Use Internal Rate of Return (IRR) for financial valuation.
- IRR helps navigate manipulated currency environments by solving for the discount rate.
