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How to Tame Inflation
This Week on The Compound
This week on The Compound
On TCAF this week Josh and Michael welcomed Prof. Jeremy Siegel, the Russell E. Palmer Professor of Finance at the Wharton School of the University of Pennsylvania, and Jeremy Schwartz, CIO of Wisdom Tree Asset Management. They discussed what the Fed should do next, the best way to tame inflation, AI stocks vs. the Dotcom bubble, and the state of the housing market. (Listen)
OUTSIDE THE COMPOUND
Prior TCAF guest Callie Cox wrote this week about the seduction of high cash yields. The problem is that they prevent investors from earning long-term returns from the stock market. Also don’t forget to subscribe to Callie’s new newsletter!
I get why many of you are saving like mad. The world doesn’t exactly feel stable with inflation, economic, and humanitarian issues at hand. Cash hasn’t felt as enticing since the Wu-Tang Clan said “cash rules everything around me” (circa 1993). But this obsession is getting a little ridiculous.
FRIENDS OF THE COMPOUND
Since the end of 2008 (see above), the U.S. stock market has trounced Europe’s stock market. The question is why? Prior TCAF Tuesday guest Drew Dickson of Albert Bridge Capital wrote about this very topic. (See also Ben Carlson’s post ‘Is Europe a Buy' this week.)
Can this outperformance last forever? Maybe. But as you might have guessed, we won’t be surprised if it doesn’t. And when we take a step closer and look at some specifics of what is driving this phenomenon, we see that a portion of the outperformance of the US over Europe during the last four years, specifically, has been driven by multiple expansion. US stocks now trade at roughly a 50% premium to Europe.
MERCH
A one-of-a-kind finance-themed Hawaiian shirt just dropped! It is a collab between The Compound and Tropical Bros. The best thing is that 10% of all sales will be donated to No Kid Hungry. Also, for a limited time, Tropical Bros. is having a July 4th sale - use promo code JULY25.
COMING SOON
TCAF will be off next week for the 4th of July holiday. Happy Independence Day from everyone at The Compound!
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