Rob Copeland, author of 'The Fund: Ray Dalio, Bridgewater Associates, and the Unraveling of a Wall Street Legend,' joins Michael Batnick and Downtown Josh Brown. They discuss Bridgewater's strange culture, Ray Dalio's influence and bullying tactics, and the challenges of asset management. They also analyze transitory inflation, AI's impact on jobs, and the economy's future projections.
The majority of American voters are dissatisfied with President Joe Biden's economic policies, with only 14% believing they are better off financially since he took office.
Public perception and sentiment regarding the economy and administration are greatly influenced by the impact of inflation, with dissatisfaction increasing as inflation rises.
Clean energy stocks have experienced significant declines, presenting a potential opportunity for investors to consider buying into the sector at low prices.
Certain big tech stocks, like Microsoft and Nvidia, may continue to provide growth opportunities, despite broader market uncertainties.
Deep dives
October CPI shows no change in prices, indicating a lack of inflation
The October Consumer Price Index (CPI) report revealed that prices remained flat, suggesting a lack of inflation. Absent shelter, prices did not see significant changes, indicating a gradual slowdown in the cost of living. This is a positive development compared to the substantial inflation seen in previous months. While certain sectors, such as food and energy, experienced price increases, the overall trend suggests a more stable economic environment.
Public sentiment reflects dissatisfaction with the Biden administration's economic policies
A recent poll conducted by the Ross School of Business and Financial Times revealed that only 14% of American voters believe they are better off financially since President Joe Biden took office. The majority of voters expressed dissatisfaction with the president's economic policies, with 70% stating that his policies have either hurt the US economy or had no impact. The perception of economic decline was more pronounced among Republican voters, with 65% claiming the president's policies had hurt the economy. Even among Democrats, only 26% stated that the president's policies had helped the economy.
Comparison to previous presidencies shows similar levels of dissatisfaction
The poll results reflect a common sentiment seen during previous presidencies. In 1980, Ronald Reagan famously asked voters if they were better off than they were four years ago, setting the stage for his victory over Jimmy Carter. Similar polls conducted during Donald Trump's presidency showed that most Americans did not believe their financial position had improved. It is important to note that the dissatisfaction expressed in the poll may be attributed more to overall economic factors, such as inflation, rather than specific economic policies of the current administration.
Inflation's impact on public sentiment highlights its significance
The poll results underscore the negative impact of inflation on public perception and sentiment. Inflation is often viewed as a significant economic concern, causing financial strain and affecting people's everyday lives. The degree of dissatisfaction expressed in the poll reflects the importance of managing inflation effectively, as it can significantly influence public opinion and confidence in the economy and administration.
The Clean Energy Crash
Clean energy stocks have experienced significant declines, with solar stocks down 78% and the clean energy ETF down 57%. Despite this, there may be an opportunity for investors to consider buying into the sector as stocks reach extreme lows.
The Rollercoaster Ride of Big Tech
Big tech stocks, such as Microsoft and Nvidia, have seen positive earnings revisions while the rest of the S&P 500 and tech sector have experienced negative revisions. This suggests that these stocks could continue to provide growth opportunities even amidst some broader market uncertainties.
The Earnings Recession is Over
After three consecutive quarters of negative earnings growth, the current earnings season is showing positive results for many companies, signaling the end of the earnings recession. This is a positive indicator for investors and may bode well for future market performance.
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