Jesse Livermore - Upside Down Markets - Understanding Fiscal and Monetary Policy - [Invest Like the Best, EP.194]

Invest Like the Best with Patrick O'Shaughnessy

Colossus

Investing, Business, Technology

4.8 • 2.4K Ratings

🗓️ 6 October 2020

⏱️ 54 minutes

🔗️ Recording | iTunes | RSS

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Summary

My guest today is Jesse Livermore. I’ve worked with Jesse as part of our research partners program at O’Shaughnessy Asset Management for years now. Whenever there is a huge, important, and complex issue to be studied, I believe he’s among the best minds in the world to tackle it. He did that recently on the topic of what he calls “upside down markets,” which is the topic of this conversation. We seek to answer the simple question: against a horrible economic backdrop, how can the stock market be near all-time highs? Jesse explains in detail the impact that fiscal policy has had on the market and may have in the future. Please enjoy this master class in upside down markets.

This episode of Invest Like The Best is sponsored by Canalyst. Canalyst is the leading destination for public company data and analysis.

If you’re a professional equity investor and haven’t talked to Canalyst recently, you should give them a shout. Learn more and try Canalyst for yourself at canalyst.com/Patrick.

For more episodes go to InvestorFieldGuide.com/podcast.

Follow Patrick on Twitter at @patrick_oshag

Show Notes

(2:29) – (First question) – What is Upside Down Markets

(5:44) – Overview on monetary easing and the fed’s role in the markets

(9:42) – Why fiscal policy is such an important lever and the impact it has on the economy

(15:07) – The impact of stimulus on public companies’ fundamentals

(19:25) – The mix of assets in the market due to stimulus

(22:13) – What made 1929 so different to how we are reacting today

(26:14) – Negative concerns: too much money in the system and the risk of inflation

(32:43) – Will the pendulum swing back to labor and higher wages

(37:23) – How these changes could impact specific companies or sectors differently

(41:34) – How he is applying all of this to his personal investment philosophy

(44:25) – Biggest risks still out there

(49:51) – Most interesting gap in his knowledge putting together this piece

Learn More

For more episodes go to InvestorFieldGuide.com/podcast.

Follow Patrick on Twitter at @patrick_oshag

Transcript

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0:00.0	This episode of Invest Like The Best is sponsored by Cannellist. Cannellist is the leading destination
0:04.8	for public company data and analysis. I had heard of Cannellist over the past few years and
0:09.2	became more interested after meeting the founder and CEO last year to pick his brain about SaaS
0:13.9	businesses. Founded by a former Bicide analyst who encountered friction in sourcing, building,
0:18.5	and updating models, Cannellist is now used by over 300 institutions, including the largest
0:23.7	money managers in North America and by a number of the guests on this show. With detailed
0:28.5	company specific models, on virtually every investable public equity, Cannellist clients are
0:33.1	able to react more quickly. If you've been scrambling to keep up with the deluge of IPOs these days,
0:38.3	Cannellist has models on Snowflake, Unity, GoodRx, and everything in between. Their pre-IPO models
0:44.0	are built as soon as the S1 hits and include all segments, KPIs, and non-GAP figures. If you're a
0:50.0	professional equity investor and haven't talked to Cannellist recently, you should give them a
0:54.0	shout. Learn more and try Cannellist for yourself at cannellist.com-flash-patrick. That's
0:59.8	C-A-N-A-L-Y-S-T.com-slash-patrick.
1:07.5	Hello and welcome everyone. I'm Patrick O'Shanasi and this is Invest Like The Best.
1:11.8	This show is an open-ended exploration of markets, ideas, methods, stories, and of strategies that
1:17.5	will help you better invest both your time and your money. You can learn more and stay up to date
1:22.2	at investorfieldguide.com.
1:27.7	Patrick O'Shanasi is the CEO of O'Shanasi Asset Management. All opinions expressed by Patrick and
1:33.6	podcast guests are solely their own opinions and do not reflect the opinion of O'Shanasi Asset Management.
1:39.5	This podcast is for informational purposes only and should not be relied upon as a basis for
1:44.1	investment decisions. Clients of O'Shanasi Asset Management may maintain positions in the securities
1:49.2	discussed in this podcast. My guest today is Jesse Livermore. I've worked with Jesse as part of
	...

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