An important part of where long-term equity returns come from is punctuated

updrafts. It's the fang upward. So something moves like quickly in a couple

of weeks. It's like wow 10% in a couple of weeks of this kind of. It's not like

ah you just need to get in and then there's a study trying to know it's these

punctuated updrafts and nobody is knows when those are going to happen. I'm Chris

Hill and that's Rich Lions. After spending a decade as the Dean of the

Haas School of Business at UC Berkeley, Lions has become the school's first

chief innovation and entrepreneurship officer. He joined Motley Full

contributor Rachel Warren to talk about the Fed, finding strong companies during

a downturn and a generational tailwind for the American economy. I want to start

off by hearing your insights and talking about a topic that I know is on a lot

of investors' minds, a lot of minds of those in our audience and that's the

impact of inflation and current market headwinds on investing as we head into

the second half of 2022 and beyond. I curious from your vantage point,

in what ways do you see the rampant rising rate of inflation in the current

market dynamics as impacting investing through the next quarter?

Yeah, well the next quarter as we look forward, most economists would say

inflation per se if it's just sort of stable and everybody's living with it

doesn't necessarily have to have any foreboding consequences for investing

over a quarter or any particular horizon. The real issue here is that it's

spiked up so far, especially relative to expectations a year ago, that the Fed

is reacting and it's that Fed reaction, right? The short-term interest rates,

...