Mindless Buying: The Driving Force Behind Modern Market Dynamics with Michael Green
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Description
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. ➡️ Watch Here
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