Unhedged Are US stocks too expensive?
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Dec 3, 2024 Discussing the possibility of a bubble in the US stock market, the hosts explore the remarkable performance and its sustainability. They consider the implications of US exceptionalism and the psychological 'TINA' phenomenon on investment strategies. Delving into the discrepancies of CEO compensation, they question the ethics and impact on corporate governance. The conversation balances serious economic analysis with light-hearted anecdotes, ensuring a thought-provoking yet entertaining discussion.
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US Stock Market Bubble?
- U.S. stocks are expensive relative to global stocks, reaching historically high levels.
- Ruchir Sharma argues this signals a bubble, while others point to the U.S.'s exceptional economic performance.
Paradigm Shift in US Markets?
- The U.S. market's high valuation might be justified by strong earnings growth and technological dominance in AI.
- BlackRock Investment Institute suggests a potential paradigm shift due to technological advancements.
Overweight US Portfolio
- Robert Armstrong admits to having a U.S.-heavy portfolio despite concerns about a bubble.
- He's hesitant to sell due to fear of missing out on further gains, highlighting the "TINA" (There Is No Alternative) effect.