Animal Spirits: Business in a Box

On this week’s Animal Spirits with Michael and Ben we discuss: What to make of negative interest rates Who is buying these bonds with negative rates? The new Apple credit card What I wish I knew at age 34 SPY and the last survivor The growth in takeout food If we’re at the low point…

The Impact of Interest Rates & Inflation on Stock Market Valuations

It feels like we’ve been having the same conversation about U.S. stock market valuations for 7-8 years now. But just saying “valuations are high so they have to come back down to average” misses out on the nuance and context required to think through where they stand. It would be naive to assume valuations will…

Animal Spirits: The Bankrupt Barber

This week’s Animal Spirits with Michael & Ben is sponsored by YCharts: Mention Animal Spirits and receive 20% off your subscription price when you initially sign up for the service. We discuss: How stocks have reacted to past Fed rate cuts There’s always a bull market somewhere Why is the stock market falling? Why aren’t there more unicorn…

Cheap Money vs. Investor Psychology

One of the biggest misconceptions about the Fed’s monetary policy is that low interest rates immediately cause investors to speculate or take on more debt. It would be silly to argue there hasn’t been any yield-chasing or excess risk-taking in recent years but there is a big difference between interest rate levels and credit (or…