Why Stocks are More Expensive Than Ever

Episode #99 | April 25, 2019

Episode #99 | April 25, 2019

Why Stocks are More Expensive Than Ever

In This Episode

On a week where the S&P 500 hit an all-time closing high, Dan breaks down what it means for investors – continuing blue skies, or peak of a mania?

Most of the time, he doesn’t care about the market’s valuations – except for two times.

These special circumstances are rare. They come together less that 1% of the time.

And as it happens, Dan has come across a major warning sign in today’s market valuations – something that comes on the heels of billionaire investor Ray Dalio’s recent report that corporate margins, which have propped up increasingly high market valuations, could come falling from right under them.

Then, after reading some tea leaves concerning Amazon’s latest ventures, and a besieged billionaire investor, Dan brings on this week’s podcast guest.

Ben Hunt is the Chief Investment Officer at Second Foundation Partners, a consultant for large institutional investors, and the author of Epsilon Theory, a newsletter and website that examines markets through the lenses of game theory, history and nature. Over 100,000 professional investors and allocators across more than 200 countries read Epsilon Theory for its fresh perspective and novel insights into market dynamics.

In prior positions, Ben has managed a billion dollar hedge fund and served as Chief Strategist for a $13 billion dollar asset manager. He has a Ph.D. from Harvard University, was a tenured Political Science professor, and has co-founded three technology companies.

From the increasing financialization of our economy, to his company’s technology that produces a Zeitgeist – meaning “mood for the age” of our economy and markets, Ben offers all kinds of insights on a market that may be entering a new, treacherous stage.