Welcome to the Money Tree Investing Podcast. Stock market, wealth, personal finance, value stocks, invest in your life.

Hello, the Smart Money Tree podcast listeners. Welcome to this week's show. My name's Kirk Chisholm,

and I will be your host. So today, once again, we're talking with Doug Hagerin. Hey, Doug.

Hey, Kirk. Good morning. Glad to have you back on. This is going to be another fascinating episode. We've gotten a lot of

positive feedback from our listeners on many of the recent episodes. I appreciate everyone's

feedback and don't be afraid to send it in because we always love feedback. So let's just dive right

in. So today, lots going on in the world. Let's start with what's actually going on with the markets. And then we'll dive into the inflation issues that are going on. So I've been getting a lot of comments here that everyone's thinking, oh, it's a bare market. The markets are just going to go straight down. And yet they've been doing really well this past week. So what week so what do you make of this dog well isn't that always the case when everybody expects the

worst it's going to be better typical trends right when everything looks like the sky is going to fall

warren buffett just put a bunch of more money into the markets and bought up some things he's not

looking short term he's looking long term but when everybody's selling the old saying is that's when you should be buying. But as we've talked about, is this a short term thing or is this a long term thing? And with a lot of fundamental paradigm shifting going on in the way things have happened in the economy, again, like anything, you should be investing more for a long term mindset because there's still a lot of things to play out here.

It's interesting because I think perspective is really important here.

If you think about the low point, let's take the NASDAQ for instance because everyone was interested in Fangstocks and technology prior to 2022.

And I look at that and say, wow, it was down like close to 30% halfway through the

year. That's terrible, right? It's down 30% in six months. That sounds like a crash. Well,

it wasn't really a crash. Now it's only, as of today's taping, it's down only about 20%, 20%, give or take.

Wow, it's really done well. Well, this is something we talk about on the show a lot, and I want to bring it up today because it's so important that we all have this recency bias in our brain.

We all have cognitive biases. It's how our brain works, right? It's how we get through the day.

If we don't have cognitive bias, you wouldn't even make it through the day. Your brain would

explode from overstimulation. In some ways, it protects us

from getting eaten from Sabretooth Tigers, you know, thousands of years ago. But now some of those

processes actually harm us in our investing. And one of those things is looking at recency bias,

assuming that everything is going to play out continuously from here to the end of time in the

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