Oil's 1987 Moment (EP.129)

Animal Spirits Podcast

The Compound

Investing, Business News, Business, News

4.7 • 2.1K Ratings

🗓️ 11 March 2020

⏱️ 42 minutes

🔗️ Recording | iTunes | RSS

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Summary

On this week's episode we talk about the carnage in the stock market, the huge drop in oil prices, going from the fear of missing out to the fear of being in, why moves in the markets feel like they're happening faster than ever, some context around the plunge, are investors overreacting, the Fed's bazooka, why bonds are scarier than stocks right now and much more. Find complete shownotes on our blogs... Ben Carlson’s A Wealth of Common Sense Michael Batnick’s The Irrelevant Investor Like us on Facebook And feel free to shoot us an email at animalspiritspod@gmail.com with any feedback, questions, recommendations, or ideas for future topics of conversation. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	Welcome to Animal Spirits, a show about markets, life, and investing.
0:05.0	Join Michael Batnick and Ben Carlson as they talk about what they're reading, writing, and watching.
0:11.0	Michael Batnick and Ben Carlson work for Ritholz Wealth Management.
0:15.4	All opinions expressed by Michael and Ben or any podcast guests are solely their own opinions
0:19.7	and do not reflect the opinion of Ritholz wealth management. This podcast is for informational purposes only. not be relied upon for
0:23.3	for informational purposes only and should not be relied upon for
0:26.4	investment decisions.
0:27.8	Clients of Ritholz wealth management may maintain positions in the securities
0:30.8	discussed in this podcast. Welcome to Animal spirits of Michael and Ben the stock market is getting wrecked today. We are recording this at
0:39.8	220-ish PM Eastern on Monday.
0:42.6	The S&P 500 is down 7%.
0:46.2	The Dow is down a million points.
0:49.6	This morning for 15 minutes, they had to halt the market for 15 minutes because a circuit
0:53.8	breaker was hit. Wait a million I'm showing down 2,000 okay someone's gonna
0:57.9	quote the points I knew you would I don't pay attention to Dow points this is a
1:02.2	bad day and this made me realize so you know the
1:05.2	Kahneman and Tversky research that shows loss aversion? Lost aversion means
1:09.9	that a loss feels two to two and a half times worse than a gain feels good.
1:15.0	So last Monday stocks were up close to 5%.
1:18.0	Today they're down 7%.
1:19.6	I think when the numbers get this big, that equation is off.
1:23.4	It's more like 10 times more painful.
	...

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