Counterintuitively, risk assets should benefit from deteriorating sentiments
The collective mood and risk appetite of investors may be turning more cautious, but this makes for a more optimistic outlook for risk assets. The author of the Demonetized Blog (and corresponding Twitter account) joins the podcast to discuss this concept and what it means for the economy and markets going forward.
Content:
- Investor surveys as contrarian indicators (2:40) and the “basic principle” that broader conservative positioning makes for bullishness (5:13)
- Nick’s “origin story” as an investor (13:36)
- Timing is everything. How much longer does this bull market have to run? (17:45)
- Interest rates should stay low indefinitely (20:37) and the economy is not facing an imminent recession (22:00)
- Prospects of a new president in the U.S. (24:12)
- What this all means for asset allocation (26:05) and why investors should keep wary of inflation (28:25)
Not intended as investment advice.