Animal Spirits Podcast An Extraordinary Decade (EP.236)
Dec 22, 2021
The discussion kicks off with the economic implications of the Omicron variant and rising inflation. They evaluate Cathie Wood's bold market predictions and dive into why many are lowering their return expectations. The middle class's unhappiness is explored, revealing insights into current societal trends. A deep dive into the future of movies includes the impact of decentralization on film funding and the rising preference for miniseries over blockbusters. Expect engaging insights on cryptocurrencies and shifting investment dynamics among millennials!
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Episode notes
Household Disruption from COVID
- Prepare for household disruptions due to COVID-19, especially with unvaccinated children.
- The disruption is the worst part, as it could require up to 10-14 days of isolation.
High US Market Returns
- The MSCI US index delivered exceptional real returns (14.6% annually) over the past decade.
- This is significantly higher than historical averages, prompting questions about market sustainability.
Multiples vs. Valuations
- GMO questioned high market multiples despite similar fundamental returns compared to the prior decade.
- Ben Carlson argued that multiples don't equal valuations and that earnings growth justifies higher valuations.
