Animal Spirits Podcast The High Beta Crash (EP.232)
Nov 24, 2021
Explore why the stock market seems unfazed by inflation, even amid a growth stock tumble. Discover how corporations are leveraging the inflation narrative to their advantage. Dive into the crypto world with insights on major acquisitions and the contrasting views on its potential. Reflect on wealth and power dynamics with examples like Elon Musk, and marvel at NVIDIA's tech innovations. The discussion also touches on consumer spending trends, corporate earnings resilience, and nostalgic cinema's influence on personal finance.
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Episode notes
Market Reactions to Inflation
- Growth stocks are declining while the US dollar is reaching multi-year highs.
- This market behavior contradicts the expected impact of high inflation.
Homebuilder Margins
- Homebuilders' gross margins have increased significantly since Q2 2020.
- This suggests they are passing on increased costs and benefiting from inflation.
MarketWatch Tweet
- MarketWatch tweeted and later deleted an exaggerated example of inflation's impact on concert tickets, wine, and gas.
- Michael criticizes this as fear-mongering and unnecessary inflation exaggeration.