Flash Crash or Recession? (EP.372)

Aug 7, 2024

Market mayhem takes center stage as the hosts debate whether we're facing a flash crash or the symptoms of an impending recession. They reflect on Japan's interest rate hike and its global impact. The discussion shifts to the challenges of the restaurant industry, technology’s influence on jobs, and the evolving landscape of service wages. Insights on inflation connect to classic movie reflections, while the hosts express mixed feelings about upcoming films, keeping the conversation lively and engaging.

Ask episode

AI Snips

Chapters

Transcript

Episode notes

INSIGHT

Japan's 1987-Style Market Shock

The Japanese market’s sharp drop was driven by a small rate hike that triggered a yen carry trade unwind.
This led to massive deleveraging and margin calls, causing a quick but intense market reaction.

INSIGHT

Powell's Missed Fed Victory Lap

Jerome Powell missed an opportunity to signal Fed victory with a 25 basis points rate cut.
This failure to act early has left markets jittery and markets may need more explicit guidance soon.

ADVICE

Automate Investing Through Chaos

Automate index fund purchases to avoid stress during market volatility.
One day of trading chaos won't make or break your investment strategy.

Get the Snipd Podcast app to discover more snips from this episode

Get the app

On episode 372 of Animal Spirits, Michael Batnick and Ben Carlson discuss: market mayhem, Japan's 1987 crash moment, Jerome Powell's legacy game at Jackson Hole, recession worries, the worst asset class for the next decade, the vibe shift on inflation, the Godfather of the 21st century, and much more!

This episode is sponsored by Global X. Visit https://www.globalxetfs.com/ to explore a lineup of more than 90 ETFs, along with insights to help you navigate a dynamic investing landscape.

Find complete show notes on our blogs:

Ben Carlson’s A Wealth of Common Sense

Michael Batnick’s The Irrelevant Investor

Check out the latest in financial blogger fashion at The Compound shop: https://www.idontshop.com

Feel free to shoot us an email at animalspirits@thecompoundnews.com with any feedback, questions, recommendations, or ideas for future topics of conversation.

Investing involves the risk of loss. This podcast is for informational purposes only and should not be or regarded as personalized investment advice or relied upon for investment decisions. Michael Batnick and Ben Carlson are employees of Ritholtz Wealth Management and may maintain positions in the securities discussed in this video. All opinions expressed by them are solely their own opinion and do not reflect the opinion of Ritholtz Wealth Management.

The Compound Media, Incorporated, an affiliate of Ritholtz Wealth Management, receives payment from various entities for advertisements in affiliated podcasts, blogs and emails. Inclusion of such advertisements does not constitute or imply endorsement, sponsorship or recommendation thereof, or any affiliation therewith, by the Content Creator or by Ritholtz Wealth Management or any of its employees. For additional advertisement disclaimers see here https://ritholtzwealth.com/advertising-disclaimers. Investments in securities involve the risk of loss. Any mention of a particular security and related performance data is not a recommendation to buy or sell that security. The information provided on this website (including any information that may be accessed through this website) is not directed at any investor or category of investors and is provided solely as general information.

Obviously nothing on this channel should be considered as personalized financial advice or a solicitation to buy or sell any securities. See our disclosures here:

https://ritholtzwealth.com/podcast-youtube-disclosures/

Learn more about your ad choices. Visit megaphone.fm/adchoices