The Year-End Melt-Up with Joe Terranova and John Roque, Momentum Stocks vs Small Caps, The Coin Flip You Won

The Compound and Friends

Josh Brown

Investing, Business News, News, Business

4.7 • 2.2K Ratings

🗓️ 20 November 2020

⏱️ 70 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

All the ingredients seem to be in place for a melt-up in the stock market into year-end. John Roque of Wolfe Research and Joe Terranova of Virtus Investment Partners join Josh Brown for a discussion about small caps catching up with large caps, favoring quality and momentum in portfolio construction, what's going on with the US dollar sell-off, and more. Plus, you may not realize it but you just won a cosmic coin flip. Many other people were not so lucky, they ended up on the other side of a bet they didn't even get a chance to make. Josh's food drive for a signed copy of the book is here: https://thereformedbroker.com/2020/11/19/this-is-the-part-where-you-and-i-step-up-and-become-heroes/ Reviews and ratings go a long way, so if you like the show, leave us one today! Hosted on Acast. See acast.com/privacy for more information. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	Okay, close your eyes. Not if you're driving, but everyone else, close your eyes. I want you to picture two guys. They're the same age. They both have a wife and two children. They live in the same town. They
0:16.7	live in the same school district. What do they do for a living? One of them sells cleaning supplies to restaurants and supermarkets.
0:27.0	The other one sells cleaning supplies to stadiums and arenas.
0:32.0	The first guy has never been busier at work in his entire life.
0:38.0	He's selling out of his stuff every week. He can't order cleaning supplies for supermarkets fast enough. He just
0:46.4	bought a brand new Ford F-150 pickup this summer. Zero percent financing and
0:52.0	you know he's writing that shit off as a business expense he is
0:55.9	killing it right now could not be doing better the other guy well the other guy is
1:02.2	effectively out of work.
1:04.1	There's nothing going on at 90% of stadiums or arenas.
1:08.9	The places that used to call him to put in regular orders.
1:16.1	A handful of NFL teams have some fans in the seats, but that's about it. No concerts, no games, no playoffs, nothing. He's sitting on the couch watching Netflix. His federal unemployment benefits
1:26.2	ran out at the end of the summer. His kids couldn't get new sneakers for school this fall.
1:31.4	There is no new F-150 in his driveway. He's fucking miserable.
1:35.6	In a normal recession, his sales and service revenues might be down 10%, maybe in a really extreme recession 20%.
1:47.8	Now it's now 90%. There's nothing to do.
1:51.5	Did the second guy do something wrong? Did he do something to deserve his situation? How about his family?
1:57.6	did they deserve this? As Clint Eastwood says in Unforgiven, deserves got nothing to do with it. The only discernible
2:06.4	difference between Guy 1 and Guy 2 are who their clients are and what the effects of the pandemic have been.
2:16.0	Arenas are empty but supermarkets are packed.
2:19.0	Air travel is dead, but car travel is through the roof. Business trips are over but weekend getaway trips are booming.
2:28.3	Steakhouses are empty but pizza delivery is making record numbers month after month.
	...

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