Animal Spirits Podcast

The Best Stocks in History (EP. 457)

48 snips
Mar 25, 2026
A wide-ranging market conversation on how prices sway geopolitics and why stocks keep defying expectations. They tackle oil, inflation, rising bond yields, and gold's sharp drop. Listeners hear takes on AI increasing work, housing weakness and accidental landlords, concentrated winners like NVIDIA, private credit risks, and pop culture picks including a surprise blockbuster.
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INSIGHT

Markets Have Become Real Time Regulators

  • Markets now act as real-time regulators, moving instantly on geopolitical news and shaping policy responses.
  • Michael Batnick and Ben Carlson note market reactions to Iran headlines and coordinated timing around market opens as proof markets “rule everything.”
INSIGHT

Oil Shocks Ripple Through Inputs Not Just Gas

  • Higher oil prices matter beyond gas; energy input inflation affects broad prices and corporate margins.
  • Michael highlights energy spending is only ~2% of households now, so consumers can absorb some gas shocks but input-cost ripple remains a risk.
INSIGHT

Hiking Rates Won't Fix Supply Shock Inflation

  • Rate moves can be counterproductive during exogenous supply shocks since hiking to fight inflation may destroy demand.
  • Ben and Michael argue a Fed hike in response to a war-driven oil spike would worsen the economic hit rather than solve the supply problem.
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