Examining Historical Investment Cycles with Jamie Catherwood

In this episode, Doug and Greg talk with Jamie Catherwood, Client Portfolio Associate at O’Shaughnessy Asset Management. Jamie has a deep fascination with and expertise in finance history. Throughout the years, he’s shared finance content that goes in-depth to help investors make better and more evidence-based financial decisions.

Jamie talks with Doug and Greg about the importance of financial history in strategizing portfolios, and insights on innovation entering deep value territory.

Key Takeaways

• [02:30] - Parallels between the current market and the past.
• [05:01] - What does history tell us about the change in behavior of retail investors?
• [07:49] - What's the Kindleberget Minsky Cycle?
• [09:06] - The Price Conviction Paradox.
• [12:35] - The Golden Age of Fraud
• [ 13:57] - Historical investment cycles.
• [17:35] - Where can the market go wrong?
• [23:35] - Are innovation stocks in deep value territory?
• [26:25] - What is the bubble triangle?

Quotes

[33:27] - “I think that the government has some role in markets, but obviously too much of a presence can kind of stifle innovation. Too much regulation can hurt markets, but I think there definitely needs to be some level of regulation because otherwise, frauds would be able to persist with kind of no threat from anyone stepping in.” - Jamie Catherwood

[39:52] - “Once you read enough about financial history and you kind of see all these crazy bubbles, it kind of gives you more perspective and makes you step back and say, ‘Is this going to be one of those? And it makes it easier to not get swept up in the next hot thing.” - Jamie Catherwood

Links 

• Jamie Catherwood on LinkedIn
• @InvestorAmnesia
• Price Conviction Paradox by Jamie Catherwood
• Nasdaq 100
• Peloton
• Russell 1000
• James Chanos | Yale School of Management
• Wall Street power player: We're incentivized to cheat
• A Minsky-Kindleberger Perspective on the Financial Crisis
• Tesla
• Ark Innovation ETF
• Innovation Stocks Are Not in A Bubble: We Believe They Are in Deep Value Territory by Catherine Wood
• Wirecard
• Target
• Boom and Bust: A Global History of Financial Bubbles by John Turner and William Quinn
• GameStop

Connect with our hosts

• Doug Stokes
• Greg Stokes
• Stokes Family Office

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Disclosure

The information in this podcast is educational and general in nature and does not take into consideration the listener’s personal circumstances. Therefore, it is not intended to be a substitute for specific, individualized financial, legal, or tax advice. To determine which strategies or investments may be suitable for you, consult the appropriate qualified professional prior to making a final decision.