The Active Management Resurgence (EP.197)

Animal Spirits Podcast

The Compound

Business News, News, Investing, Business

4.7 • 2.1K Ratings

🗓️ 31 March 2021

⏱️ 52 minutes

🔗️ Recording | iTunes | RSS

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Summary

On today's show we discuss the most bullish thing about the stock market right now, the catalyst for value beating growth, when the smart money is really dumb, the relationship between inflation and wealth inequality, the best time ever to found a start-up and 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	Today's animal spirits is brought to you by our friends at Y-charts.
0:03.6	I am a very simple guy, Michael.
0:05.4	So I know this.
0:06.5	My favorite tool on Y-charts to check is just the drawdown.
0:10.8	So you type in a ticker of an ETF or an index or a stock and you can see what the drawdown is in.
0:16.8	From our research, we know 5% of all trading days in the S&P 500 over the last
0:21.7	call it 90 years have been a new all time high.
0:24.4	Meaning the other 95% of the time stocks are in some form of drawdown.
0:29.0	I'm guessing it's worse than this even for most individual stocks because they probably have
0:34.0	a greater drawdown than that.
0:35.6	So I'd like to look at that.
0:36.8	Can I throw a data point on?
0:38.0	Let's hear it.
0:38.8	I believe the average drawdown on any given day, I think it's like 12%.
0:45.8	Oh, that's a good stat.
0:46.7	Okay.
0:47.4	Thank you.
0:48.0	Maybe we can verify.
0:49.2	Anyway, so I use this one on Y-charts all the time.
0:52.3	Yeah, that sounds good.
0:53.4	Just a simple drawdown and you can look at it over different time frames.
0:57.0	That's one of my favorite things on the tool because you can just flip back and forth
	...

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