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You are at:Home » Animal Spirits: Passive is Eating the Market
Wealth Building

Animal Spirits: Passive is Eating the Market

adminBy adminFebruary 14, 2024No Comments4 Mins Read
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Posted February 14, 2024 by sean

Today’s Animal Spirits is brought to you by Spear Funds:

See here for more information on the Spear Alpha ETF

On today’s show, we discuss:

Listen here:

Recommendations:

Charts:

Tweets:

Bears: Stocks are a bubble b/c all the returns are from multiple expansion (ME).

Truth: S&P 500 total return past 4 yrs was 58%. Did you know 51% was from earnings and divs, while only 7% was ME?

Yeah, they don’t always tell you that part. @sonusvarghese keeps busting myths. pic.twitter.com/AKez1HaE9m

— Ryan Detrick, CMT (@RyanDetrick) February 8, 2024

Do index $$ impact valuations? Of course.

But I’d note the biggest bubbles of the last 5 years were:

SPACS
Direct listings
Private rounds
Crypto / NFTs
Collectibles
Self storage
Private credit

One thing all of them have in common?

They were never (or barely) in index funds.

— Jake (@EconomPic) February 10, 2024

One of the biggest mistakes by finance idiots* is to conflate tail risk awareness with bearishness.

Believing in Black Swans ≠ Permabears.

* Short for fucking idiots. pic.twitter.com/Jd3uWPgqJg

— Nassim Nicholas Taleb (@nntaleb) February 7, 2024

Contact us at animalspirits@thecompoundnews.com with any feedback, recommendations, or questions.

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Nothing in this blog constitutes investment advice, performance data or any recommendation that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person. Any mention of a particular security and related performance data is not a recommendation to buy or sell that security.  Any opinions expressed herein do not constitute or imply endorsement, sponsorship, or recommendation by Ritholtz Wealth Management or its employees. 

Wealthcast Media, an affiliate of Ritholtz Wealth Management, received compensation from the sponsor of this advertisement. Inclusion of such advertisements does not constitute or imply endorsement, sponsorship or recommendation thereof, or any affiliation therewith, by the Content Creator or by Ritholtz Wealth Management or any of its employees. Investing in speculative securities involves the risk of loss. Nothing on this website should be construed as, and may not be used in connection with, an offer to sell, or a solicitation of an offer to buy or hold, an interest in any security or investment product.

This content, which contains security-related opinions and/or information, is provided for informational purposes only and should not be relied upon in any manner as professional advice, or an endorsement of any practices, products or services. There can be no guarantees or assurances that the views expressed here will be applicable for any particular facts or circumstances, and should not be relied upon in any manner. You should consult your own advisers as to legal, business, tax, and other related matters concerning any investment.

The commentary in this “post” (including any related blog, podcasts, videos, and social media) reflects the personal opinions, viewpoints, and analyses of the Ritholtz Wealth Management employees providing such comments, and should not be regarded the views of Ritholtz Wealth Management LLC. or its respective affiliates or as a description of advisory services provided by Ritholtz Wealth Management or performance returns of any Ritholtz Wealth Management Investments client.

References to any securities or digital assets, or performance data, are for illustrative purposes only and do not constitute an investment recommendation or offer to provide investment advisory services. Charts and graphs provided within are for informational purposes solely and should not be relied upon when making any investment decision. Past performance is not indicative of future results. The content speaks only as of the date indicated. Any projections, estimates, forecasts, targets, prospects, and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others.

Wealthcast Media, an affiliate of Ritholtz Wealth Management, receives payment from various entities for advertisements in affiliated podcasts, blogs and emails. Inclusion of such advertisements does not constitute or imply endorsement, sponsorship or recommendation thereof, or any affiliation therewith, by the Content Creator or by Ritholtz Wealth Management or any of its employees. Investments in securities involve the risk of loss. For additional advertisement disclaimers see here: https://www.ritholtzwealth.com/advertising-disclaimers

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