Animal Spirits Podcast Obvious Signs of the Top (EP.257)
May 18, 2022
The discussion kicks off with insights into the current confusing market landscape, emphasizing the challenges of managing client expectations in bear markets. The hosts reflect on the indicators of a speculative peak and how Federal Reserve policies shape economic behavior. Personal anecdotes reveal psychological hurdles during downturns. There's a fascinating exploration of gasoline consumption trends and the surprising impacts on economies. The conversation wraps up with commentary on sports broadcasting and entertainment's influence on viewer engagement.
AI Snips
Chapters
Transcript
Episode notes
Bear Market Strategies
- Buy and hold is simpler, but it might not be easier during market downturns.
- Trading defensively can feel better emotionally, even if it is more complex.
Hindsight is 20/20
- Obvious signs of market tops are often only clear in retrospect, not in real-time.
- Numerous indicators, like Matt Damon's crypto ad and Tom Brady's laser eyes, suggested a top.
Exxon vs. Zoom
- Michael Batnick made a 20% profit trading Exxon, but missed a subsequent double in price.
- Exxon's value drastically outpaced Zoom's, reversing a previous trend.