How to Know When the Stock Market’s In a Bubble
In This Episode
On the heels of the 10-year anniversary of the March 2009 stock market nadir, Dan sums up how things looked when the S&P 500 bottomed out at 666 at the dark days of that crisis, how things look a decade later, and why investors should keep a two-word phrase at the top of their minds: “Cycles matter.”
Now, with the stock market up double digits since December, Dan has been thinking hard about the best way to judge the valuation of the overall market. His surprising conclusion is that 95% of the time it doesn’t matter how expensive the overall market has become – with two exceptions.
As always, Dan sticks to his motto when assessing markets: “We don’t predict, we prepare.”
He then welcomes this week’s guest to the show. Jeffrey W. Ross, MD retired in 2017 from a successful first career as a fellowship-trained Interventional Radiologist and a board-certified Diagnostic Radiologist. The previous Secretary/Treasurer of Colorado Springs Radiologists, P.C., Dr. Ross also sat on the Board of Directors as co-owner of Penrad Imaging in Colorado Springs, CO.
He is now the CEO and managing director of Vailshire Capital Management, which he founded in 2013 with the motto of heling clients “Live well and invest wisely.”
His investing philosophy, value investing with a focus on momentum as well, prompts the comment from Dan, “Well from that description, I sure wish I’d been you for the next 10 years instead of me.”
Jeff is full of insights for why the greatest investing legends of all time – Buffett, Einhorn, Ackman, and others – have been lagging their usual returns over the last 10 years, as well as what’s changed, and what’s next.