Mindless Buying: The Driving Force Behind Modern Market Dynamics with Michael Green

Stansberry Investor Hour

Stansberry Research

America, How, To, Crash, Money, Learn, Stansberry, Income, Research, Debt, Stocks, Porter, Business, Realestate, Banking, Investment, American, Investing, Invest, Howtosave, Sjuggerud, Ferris, Eifrig, Jubilee, Buck, Sexton, Market, Bonds, Churchouse, Savings, Options, Lashmet

4.4 • 677 Ratings

🗓️ 17 October 2023

⏱️ 65 minutes

🔗️ Recording | iTunes | RSS

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Summary

On this week's Stansberry Investor Hour, Dan and Corey are joined by Michael "Mike" Green. Mike is the chief strategist and portfolio manager of Simplify Asset Management – an investment advisory firm. He has spent nearly 30 years studying markets and market structures, and he brings his decades of insight to today's show.

But first, Dan and Corey discuss the evolving landscape of the bond market, the opportunity in Treasury bills, and the potential impact of high bond yields on the broader investment world. Corey warns...

Take advantage of it now, because if the economy goes in the crapper in the future, the [bond] rates are going to go down when the Fed cuts [interest] rates.

Mike then joins the conversation to delve into the world of passive investing, which involves never transacting and only ever holding assets. This leads to a strategy of mindless buying:

[The stock market is] marching upwards, being led by a very few number of extremely large-cap stocks that have relatively limited growth prospects... In real terms, PepsiCo's sales are down over the last decade. This is true for companies like Apple where their sales growth, since the introduction of the iPhone 5, [is] stagnant... certainly not justifying the types of valuations that we see.

Finally, Mike details how the Federal Reserve can influence the markets with interest rates, and in turn how interest rates can affect passive investing. Moreover, he highlights the unique opportunity in the bond market and explains why bonds are an attractive option for investors.

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Transcript

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0:00.0	Hello and welcome to the Stansberry Investor Hour. I'm Dan Ferris. I'm the editor of Extreme Value and the Ferris Report, both published by Stansberry Research.
0:11.0	And I'm Corey McLaughlin, editor of the Stansberry Daily Digest. Today, Dan interviews Michael Green, chief strategist of Simplify Asset Management.
0:19.0	And today, Corey and I will talk about getting rich and
0:21.7	living off the interest. And remember, if you want to ask us a question or tell us what's on your mind,
0:26.7	email us at Feedback at InvestorHour.com. That and more right now on the Stansberry Investor Hour.
0:42.9	There are some things more exciting than bonds.
0:44.5	Just a few.
0:45.7	Quite, quite a bit.
0:46.5	Maybe everything.
0:47.1	Yeah.
0:48.9	In normal life.
0:49.4	Yeah.
0:51.1	Yes, in normal life.
0:53.8	Boring movies are more exciting than bonds. Typically, yes.
0:56.0	Yeah, typically, right? Typically. But when you're in a three-year bond bear market,
1:01.1	all of a sudden, everybody wants to talk about bonds. At least all the headlines do. I don't
1:05.8	know if investors do. They seem to hate them. I saw a really good, a guy named Dan McMurtry who calls himself
1:13.1	Super Mogatu on Twitter. At least he used to. I haven't seen him there in a while. He had a thing
1:17.9	where he gave a presentation, I think it was. This might even have been a recent presentation at
1:23.9	the Grants Conference, which I haven't been to in years. Anyway, the headline was, no, Mr. Bond, I expect you to die, which if you're old enough,
1:34.8	you recognize that as a line from the film Goldfinger with, you know, Sean Connery as James Bond
1:41.4	and Gert Frobe as the villain Goldfinger. And he's got Bond strapped to a table and he's got this laser beam just inching its way towards Bond. And then Goldfinger is walking away and Bonn turns his head and says, do you expect me to talk? And he says, no, Mr. Bond. I expect you to die. It's like one of the
	...

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