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Ep. 220: Victor Sperandeo Interview with Michael Covel on Trend Following Radio

Michael Covel's Trend Following

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The Wealth Effect and the Stock Market

The wealth effect has meaning to three tenths of 1% of the wealth accumulated. If the market went up 10%, it would be worth 30 basis points in spending, he says. A bulk of the stock market is held by pension funds and they don't spend the money. But a great deal of their money is also in fixed income, where they're being killed.

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