Preparing for a Soft Landing

Could we be looking at a year with a soft landing where inflation comes down without major economic pain? Greg and Doug dive into the potential of that outcome and the Fed’s role in it. They also look back on the EU energy crisis and its fear-based narratives and discuss how emotions/human nature affect the cycles of investment.

Key Takeaways

[01:30] - The potential for a soft landing [02:50] - Rent as a portion of CPI [05:08] - What to expect from the Fed’s rate hiking cycle [08:32] - Looking back on the fear-based narratives surrounding the EU energy crisis [11:36] - European vs U.S. Investments over the past 15 years & since the Ukraine invasion [14:04] - How emotions, sentiments, and narratives affect investment cycles

Quotes

[15:41] - “In bull markets, everyone wants to own what's working. And in bear markets, nobody wants to own what's not working. That mindset just shifts. It's the greed component. And that mindset shift from greed to fear is pretty amazing to see in such a short timeframe.” - Doug Stokes