Lumida Wealth : Non-Consensus Invest Beyond the Ordinary

WOYM: FOMC Reaction; Growth vs Value check-in; Animal Spirits

Dec 20, 2024

Dive into the latest market dynamics as experts dissect the FOMC's impact on interest rates and its ripple effects across sectors. Explore the ongoing tug-of-war between growth and value strategies, with insights into emerging markets and currency trends. Delve into the psychology of the market, highlighting 'Animal Spirits' and speculative investments. Plus, gain a deeper understanding of sectors like semiconductors and the implications of AI on stocks like Micron. A thorough analysis that points toward investment opportunities amid fluctuating economic conditions.

Ask episode

AI Snips

Chapters

Books

Transcript

Episode notes

INSIGHT

FOMC Reaction and Market Outlook

Markets reacted negatively to the FOMC outcome, initially down 80 bps, accelerating after Powell's remarks.
Long-term outlook is bullish due to higher growth expectations, despite short-term bearish sentiment.

ADVICE

Focus on the 10-Year Yield

Watch the 10-year yield, as it influences mortgage rates and impacts market breadth expansion.
Higher rates negatively affect present value of securities, impacting small caps more significantly.

INSIGHT

Dollar Strength and Emerging Markets

The dollar is strengthening due to lower rate cut expectations, making US investments more appealing to international investors.
This dynamic negatively affects emerging markets.

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

Get the app

Labyrinths

Jorge Luis Borges

Jorge Luis Borges's "Labyrinths" is a collection of his most celebrated short stories, showcasing his mastery of intricate plots and philosophical themes. The stories often explore the nature of reality, time, and identity, blurring the lines between fiction and reality. Borges's unique style, characterized by its intellectual depth and playful use of metafiction, has had a profound influence on literature and popular culture. Many of his stories feature recurring motifs like libraries, mirrors, and labyrinths, symbolizing the complexities of human experience. His work continues to fascinate readers with its intellectual stimulation and imaginative power.

The Power of Myth

Joseph Campbell

This book is derived from a series of television interviews between Joseph Campbell and Bill Moyers, aired in 1988. It delves into the universal themes and functions of myths across various cultures, highlighting their role in uniting communities, explaining social, cosmological, and spiritual realities, and guiding individuals through life's significant stages. Campbell discusses how myths help people understand common human experiences such as love, death, and the search for meaning. He also addresses the modern world's disconnection from mythological narratives and the consequences this has on individual and societal well-being. The book emphasizes the importance of myths in providing a framework for life, fostering community identity, and helping individuals navigate life's transitions and challenges[1][2][4].

The outsider

Colin Wilson

In 'The Outsider,' Colin Wilson examines the psyche of the Outsider through the lives and works of various literary and cultural figures such as Albert Camus, Jean-Paul Sartre, Ernest Hemingway, Hermann Hesse, and Fyodor Dostoyevsky. The book delves into the Outsider's experience of dislocation and his struggle to find meaning and purpose in a world that seems devoid of it. Wilson argues that the Outsider is a metaphysical man who seeks a transcending meaning and purpose for human existence, often feeling isolated and disconnected from society. The book is both a study of the Outsider's predicament and an impassioned call for a new form of existentialism that could provide a satisfying and objective religious understanding of life.