Investment Strategies: Conflicting Trends [2023]

Part 1 of 2
After a tough 2022, big tech stocks are back and leading the market rally. According to research firm Strategas, ten stocks, including Apple, Microsoft, Nvidia, Meta, Tesla, Amazon, Alphabet, Salesforce, AMD, and Broadcom, have accounted for 90% of the S&P 500's year-to-date gains.
This dominance of a handful of stocks has investors facing some interesting choices, including cash, which is back with money market funds offering yields as high as 5%, and gold, which has recently traded near record territory at over two thousand dollars an ounce.
All of this is happening against a backdrop of the highest interest rates in years, stress in the banking system, and a Federal Reserve under pressure to pause its fight against inflation.
To discuss the outlook for the economy and markets, and the best course for investors, we are joined by Ed Yardeni, President and Chief Investment Strategist of Yardeni Research, a PhD economist, long-time Fed watcher, and investment strategist who is widely followed by institutional investors.
#investingstrategy #stockmarket #gold #cash #techstocks
00:00 Hello!
00:42 Introduction
03:27 Interview with Ed Yardeni
23:33 One Investment
24:32 Action Point
WEALTHTRACK episode 1942 broadcast on April 14, 2023.
More info: wealthtrack.com/navigating-to...
Bookshelf:
In Praise of Profits! : amzn.to/3ogciJC
Predicting the Markets: A Professional Autobiography: amzn.to/3o7dGOp

[@daveschmarder-1950]

You always have the best guests, Consuelo.

[@joannemeeks745]

This really does size up exactly what's going on. A truly "diversified long-term portfolio" is the answer.

[@vb4567]

Five trillion dollars sitting and waiting in money market accounts, just waiting for hint of a recovery to jump onto stocks, seems to me to have a moderating effect on how low stocks will go irrespective of how bearish the economy gets.

[@michaelswami]

Thoughtful guest and great interview.

[@Bullseye120]

Hello, I have missed your program the last few weeks. I am so glad that I found it this week and I very much enjoyed the review with Mr. Yardeni. Your program and videos are edited to the perfect length IMHO. Thank you so much for all you do.

[@FIRE_DrNinjaTurtle]

Love it. Great interview

[@krumw2]

My "pearl" is Yardini's comment about holding onto stocks fhtough '"Thick and Thin" in order to collect the dividends.

[@keegs3154]

I agree with /understand Ed's claim early in program that the FED's interest rate policy was driven by high labor demand/higher wages in the service sector (healthcare/entertainment) Later in the program he mentions that advancements in AI will lend itself to solving labor shortages. I'm not sure.

[@George-jm4rn]

Mr. Yardeni has misjudged inflation the entire time and may well be misjudging it again.

[@kingdarius5252]

No kidding, he lost all credibility a long time ago with these silly CNBC interviews.

[@george6977]

😊

[@joanbonnet8229]

Great interview!

[@clrodrick]

I definitely respect Yardeni, but I feel he has a blind spot when it comes to gold and crypto. Regarding gold, as long as the central banks still value the barbarous relic enough to store it as a reserve I will continue to have my own portfolio backed with a position as insurance. It's not an investment it is insurance! Regarding crypto, I feel he doesn't even follow or understand the sector. He claims crypto offers no yield which is just untrue as plenty of crypto out there like ethereum or cardano can be staked and early 2-5% yield (paid out in more ether or cardano)

[@charlesbrown9213]

Since the turn of the century (January 2000) gold has slightly outperformed the US stock market.... its close enough to call it even...
So if Ed thinks gold doesn't merit an investment allocation, he should take a similarly unexcited stance re US stocks.

[@charlesbrowne9590]

Dr. Yardeni is correct that crypto has no yield. Most people do not have the capital to purchase a house or car. Businesses require capital to expand. Thus, we need banks to allocate capital. If crypto were to become a currency, we would need crypto-banks to fractionally reserve the crypto-currency and loan it out. We would have paper crypto. The bank offers the yield, not the coin.
You are correct to say that gold is not an investment.

[@ryansmith5531]

Soft landing growth recession, lol.

[@kevinobrien9271]

I think he made up that term 😅

[@jackburton806]

I was just telling my married bachelor friend that I too thought we were headed for a growth recession how odd.

[@brianhollenbeck8633]

😇👑🌏🌍🌎💚@undwallace