Plain English with Derek Thompson Why the U.S. Could Be Headed For the "Weirdest Recession Ever"
May 17, 2022
Michael Batnick and Ben Carlson, co-hosts of the Animal Spirits podcast and contributors at Ritholtz Wealth Management, join to dissect the quirky state of the U.S. economy. They explore surprising stock market statistics and the long-term crypto outlook. The duo pulls parallels between past recessions and the current landscape, emphasizing the subtle signs of potential downturns. With rising inflation and interest rates, they ponder the resilience of consumers and the lessons learned from market volatility, all while keeping the tone light and engaging.
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Market Shift
- The shift from narrative-driven growth stocks to value-driven profit stocks is evident.
- ExxonMobil's market cap has grown 14 times larger than Zoom's in under a year.
Growth Stock Crash
- Many popular growth stocks are experiencing significant declines (e.g. Peloton, Robinhood, Zoom, Facebook, Amazon).
- One in ten stocks in the Russell 3000 are down 90% or more from all-time highs.
Buy the Dip
- Net savers benefit from market downturns by accumulating assets at lower prices.
- Lower stock prices are buying opportunities for long-term investors.