Animal Spirits Podcast

Dive into intriguing discussions about the strange dominance of tech stocks and how they echo historical market bubbles. The conversation pivots to whether AI is overhyped or just getting started, and they tackle the generational economic gap impacting adult children. Expect to hear about the massive data center buildouts transforming the economy, the nuanced world of credit scores, and the perplexing dynamics of tariffs. Plus, explore the rising impact of AI on jobs and how demographics are shifting milestones in life.

In this engaging discussion, portfolio manager Rahul Sharma from Schaefer Cullen Capital Management dives into the resurgence of emerging markets. He shares insights from his recent trip to China, highlighting its engineering prowess and advancements in AI and EVs. Rahul elaborates on improving corporate governance in Asia, the impact of a falling dollar, and how governance reforms are attracting investment. He also touches on India's rapid digitization and the fund's dividend-focused strategy, which aims to ensure stable returns amid shifting market dynamics.

Doug and Heather Boneparth, co-authors of Money Together, dive into the intricate world of couple finances. Doug shares tales of building a business alongside a partner, while Heather emphasizes the importance of communication and fairness in navigating money matters. They discuss common pitfalls couples fall into, like unequal labor divisions and the impact of upbringing on financial talks. The duo also suggests innovative strategies for effective money meetings and highlights the significance of adapting communication styles for financial understanding.

Explore how behavior influences bull markets and the surprising number of stocks that outperform the S&P 500. The hosts tackle the implications of 5x leveraged ETFs and debate the potential for bubbles fueled by widespread belief. Consumer spending habits emerge, with $20 lunch trends signaling new norms. They also dive into AI's potential impact on GDP and discuss the pressing need for lower housing prices. Intriguingly, the rise of Halloween decorations reflects shifting cultural values among millennials.

Gabby Santos, J.P. Morgan's Chief Market Strategist for the Americas, dives into the bank's annual Long-Term Capital Market Assumptions report. She discusses the influence of economic nationalism, fiscal activism, and AI innovation on market dynamics. Gabby explains why traditional 60-40 portfolios may struggle and highlights alternatives like gold and real estate for better diversification. She also explores the potential for international markets to outperform the U.S. and weighs the impact of tech on inflation. Plus, is there a tech bubble? Gabby shares her insights!

Morgan Housel, author and finance writer known for his insights on the psychology of money, joins the conversation to explore how spending reflects our values. He shares thoughts on why people brag about their wealth and how luxury purchases can stem from insecurity. The discussion also touches on balancing present enjoyment with future regrets in spending, the joys of tipping, and the nuances of valuing experiences over material possessions. Housel emphasizes the importance of generosity and intention, all while reflecting on changing priorities through parenting.

Delve into the debate on AI bubbles, exploring media sentiment and Jesse Livermore's market insights. Discover the rationale against gold investments and the implications of 5x leveraged ETFs. A lively discussion on heavily shorted stocks reveals their unexpected outperformance. Will Bitcoin soar to $200k by 2027? The hosts also tackle the rising average car price and ponder the effects of consumer credit trends. Plus, enjoy a countdown of top horror films just in time for Halloween!

Lance Humphrey, head of portfolio management at Victory Capital, shares insights on integrating value and momentum in investing. He discusses why value strategies attract more capital than momentum and highlights the risks of high-valuation momentum. Lance explains Victory's approach to portfolio construction, utilizing a blend of value and momentum signals to navigate market conditions. He also uncovers the different behaviors of these factors across various markets and emphasizes the importance of risk-adjusted weighting for optimal performance.

Dave Thornton, Co-founder, CEO, and CIO of Vested, dives into the complexities of helping startup employees exercise options. He explains the common challenges faced by employees, particularly the 90-day exercise problem. Thornton discusses Vested's innovative funding model that allows employees to avoid losing shares. He also explores how Vested uses machine learning to assess fair market values of private companies and the importance of diversification in venture capital investments, all while navigating the competitive landscape of employee liquidity programs.

The hosts dive into the challenge of predicting market tops and why earnings play a crucial role in this elusive game. They unravel recent market corrections and explore surprising data showing increased stock ownership among low-income Americans. The discussion shifts to the soaring gold prices, driven by central banks and geopolitical tensions. Plus, they tackle the cash-on-the-sidelines myth, emerging trends in the airline industry, and the economic footprint of private companies. It's a lively analysis of current market dynamics!