Do Valuations Matter? (EP.320)

Animal Spirits Podcast

The Compound

Investing, Business News, News, Business

4.7 • 2.1K Ratings

🗓️ 9 August 2023

⏱️ 59 minutes

🔗️ Recording | iTunes | RSS

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Summary

On episode 320 of Animal Spirits, Michael Batnick and Ben Carlson discuss: bull market corrections, why valuations don't matter all that much, why people were so wrong about the stock market, why we haven't gotten a recession yet, $1 trillion in credit card debt, Robinhood's results, tipping at a hotel, and much more! Today's episode is sponsored by our friends at YCharts. Re-imagine your portfolio research with the latest addition to your YCharts toolkit: Portfolio Optimizer. Start your free trial and get 20% off your first subscription at: https://go.ycharts.com/animal-spirits-referral. Find complete show notes on our blogs... Ben Carlson’s A Wealth of Common Sense Michael Batnick’s The Irrelevant Investor Feel free to shoot us an email at animalspiritspod@gmail.com with any feedback, questions, recommendations, or ideas for future topics of conversation. Check out the latest in financial blogger fashion at The Compound shop: https://www.idontshop.com Investing involves the risk of loss. This podcast is for informational purposes only and should not be or regarded as personalized investment advice or relied upon for investment decisions. Michael Batnick and Ben Carlson are employees of Ritholtz Wealth Management and may maintain positions in the securities discussed in this video. All opinions expressed by them are solely their own opinion and do not reflect the opinion of Ritholtz Wealth Management. Wealthcast Media, an affiliate of Ritholtz Wealth Management, receives payment from various entities for advertisements in affiliated podcasts, blogs and emails. Inclusion of such advertisements does not constitute or imply endorsement, sponsorship or recommendation thereof, or any affiliation therewith, by the Content Creator or by Ritholtz Wealth Management or any of its employees. For additional advertisement disclaimers see here https://ritholtzwealth.com/advertising-disclaimers. Investments in securities involve the risk of loss. Any mention of a particular security and related performance data is not a recommendation to buy or sell that security. The information provided on this website (including any information that may be accessed through this website) is not directed at any investor or category of investors and is provided solely as general information. Obviously nothing on this channel should be considered as personalized financial advice or a solicitation to buy or sell any securities. See our disclosures here: https://ritholtzwealth.com/podcast-youtube-disclosures/ Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	Today's animal spirits is brought to you by our friends at Weicharts. Weicharts just launched
0:04.5	in enhancement to this scenario tool called future dates, which allows users to build hypothetical
0:10.0	scenarios that include a future end date. So let's say you want to look out what's going to happen if
0:14.4	I have this this portfolio, and I put in these expected returns, what's going to happen 10 years
0:20.4	from now, five years from now, seven years from now, how will we look? Which is kind of an interesting
0:25.0	thing from a financial planning perspective, especially if people are trying to think of specific
0:28.9	scenarios, best case, worst case, median case, kind of deal, right? I kind of like this idea. So
0:36.0	basically you can quickly test out different portfolios on the fly, find the right allocation for
0:40.0	it. A model you're looking at, run proposals to analyze risk and return profiles of an individual
0:44.8	security or leverage the PDF report capability to effectively communicate investments with powerful
0:50.5	visuals to tell a story to your clients. I like it. I do a lot of scenario analysis myself.
0:55.8	Speaking of scenario analysis, Ben, I see a new fresh cut on your head. Yes, I got a haircut.
1:00.4	Thanks for noticing. I miss those days. Actually, I don't miss those days. They ended pretty
1:03.7	dramatically. But imagine this scenario analysis where you could see what I would look like with
1:07.2	the head of air. Did you ask your barber or stylist like what you should do once you started going?
1:13.6	No, but it just got progressively worse and worse because he wouldn't say anything. He would
1:17.2	just hold the mirror up to the back of my head. I'm like, I know. I know. Oh yeah, that's true.
1:22.5	If you're balding and you get it because they show at the end, you know, I was thinking
1:25.9	as for Africa, my haircut yesterday, the thing that I always say is they cut all the hair off
1:29.6	the top and then they go, how's that length? There's nothing you can do at that point if I say,
1:32.9	you went too short. Yeah, put it back. See, that's why you have scenario analysis tools because you
1:37.2	want to have a range of outcomes to set expectations ahead of time. You can't do that with the haircut.
	...

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