Odd Lots

How All Financial Markets Turned Into The Same Big Trade

Sep 28, 2020

In this discussion, Jared Woodard, Head of the Research Investment Committee at Bank of America, delves into why all financial markets seem to align in a single trade. He highlights the surprising convergence of asset classes like cryptocurrencies and stocks, driven by low growth and inequality. Woodard explores speculative trading's impact on asset prices and the debate between growth and value stocks. He also emphasizes the rising importance of intangible assets in investment strategies and the need to rethink investment approaches in a changing economic landscape.

41:56

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Episode guests

Jared Woodard

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Episode notes

Intro

2min

Blurring Assets: The New Financial Landscape

9min

Speculative Flows and Asset Price Dynamics in a Low-Growth Environment

5min

Growth vs. Value: Market Dynamics Unpacked

6min

Embracing Intangible Assets in Investing

11min

Rethinking Investments in a Changing Economy

12min

These days it seems like all financial markets are the same big trade. A gold chart looks like a Tesla chart, which looks like an Ethereum chart, which looks like a chart of a basket of cloud computing stocks. So why is this? And what could cause that to change? On this episode, we speak with Jared Woodard, the head of the Research Investment Committee at Bank of America, who recently published a report on exactly this. As Woodard explains it, the question starts with low growth and inequality, and the premium that investors will pay for certain types of securities in such an environment. He walked us through how that might change, and what investors can do in the meantime to discover under-appreciated values in the market.

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