AI-powered
podcast player
Listen to all your favourite podcasts with AI-powered features
On with Kara Swisher
How Trump's Policies Will Shape the Stock Market with Aswath Damodaran
Feb 27, 2025
Aswath Damodaran, the Professor of Finance at NYU's Stern School, dives into the intricacies of stock market valuations in light of Trump's policies. He debates whether the market is overvalued, particularly amidst rising tech stock concerns and the dominance of 'MAG-7' companies. The conversation touches on the impact of trade tensions and immigration policies on corporate decisions and IPO activities, while also analyzing the stock performance of companies like NVIDIA and Palantir amidst broader economic challenges.
01:00:13
Episode guests
AI Summary
AI Chapters
Episode notes
Podcast summary created with Snipd AI
Quick takeaways
- Current stock valuations suggest an overvaluation, with an 80% likelihood prompting fears of upcoming market corrections.
- The dominance of major tech stocks is creating market vulnerabilities, especially as these giants show signs of slowing growth.
Deep dives
Stock Valuation Outlook
Current assessments suggest that U.S. stocks are predominantly overvalued, with an estimated 80% chance of being inflated in price. This conclusion arises from a significant period of stock price increases that have outpaced earnings growth, which has only seen a modest rise of about 10-11% annually. With interest rates climbing, investors require more substantial risk premiums to justify stock purchases. Market corrections are likely due, either through falling stock prices or unprecedented earnings increases, the latter being highly improbable given that earnings are already at peak levels.
Get the Snipd
podcast app
Unlock the knowledge in podcasts with the podcast player of the future.
AI-powered
Discover
highlights
Listen to the best highlights from the podcasts you love and dive into the full episode
Save any
moment
Hear something you like? Tap your headphones to save it with AI-generated key takeaways
Share
& Export
Send highlights to Twitter, WhatsApp or export them to Notion, Readwise & more
AI-powered
podcast player
Listen to all your favourite podcasts with AI-powered features
Discover
highlights
Listen to the best highlights from the podcasts you love and dive into the full episode