Transcript
Michael Batnik (0:00)
Today's episode is sponsored by Innovator ETFs brought to you by CBOE the exchange for the World Stage Michael and I have had Innovator ETF CEO Bruce Bond on the show a number of times to talk about their different strategies over the years and how they've changed and evolved. And they're definitely a leader in the defined outcome space. They are coming out with a new strategy July 1st with the first dual direction buffer ETFs. These ETFs allow investors to make money in both positive and negative markets. So they're offering a 10% inverse and a 15% inverse version. For example, the 10% if the market is down 10% you would be up 10%, not just flat. So it's a different kind of hedge, right? It's one to one to the upside up to the cap. So basically making money when others are losing it. So it's a total inverse of the market. It's a strategy that's racked up billions in the structured product wrapper, but will now be available in an etf. Kind of crazy, this hasn't been done before. To learn more, registered for an exciting webinar link in the comments.
Ben Carlson (0:56)
Today's Animal Spirits is brought to you by YCharts. If you haven't checked out Y Charts AI features lately, it's doing a lot more than just answering your questions.
Michael Batnik (1:04)
So they launched this new AI Market Commentary module and it's like intraday, your favorite thing insights right to your dashboard. So if you want to know what's going on in the markets, what's moving the sectors, what are the macro headlines, this AI tool updates every 15 to 20 minutes. So basically it gets you up to speed. You know, if you're trying to figure out what's going on. Advisor is also putting in the AI chat to work for major time saving ways. I like it because you can just write a question in there, it'll spit stuff out for you, but it's also presentation ready charts for client reports and these sort of things. It's really helpful.
Ben Carlson (1:35)
You could use Quick Extract to turn static PDFs into impactful portfolios, generating market recaps and quarterly updates to keep your clients informed.
Michael Batnik (1:47)
All right, so this stuff helps you save time, build it right into your workflow. This is how AI is going to work, I guess, helping you create proposals faster, service insights quicker so you spend less time researching, more time advertising. Click the link in the show notes as always to start using the AI chat today and when you sign up for your first professional license with Y Charts. Get 20% off your subscription when you mention Animal Spirits. New customers only. Click that link in the show Notes. Welcome to Animal Spirits, a show about markets, life and investing. Join Michael Batnik and Ben Carlson as they talk about what they're reading, writing and watching. All opinions expressed by Michael and Ben are solely their own opinion and do not reflect the opinion of Ritholtz Wealth Management. This podcast is for informational purposes only and should not be relied upon for any investment decisions. Clients of Ritholtz Wealth Management may maintain positions in the securities discussed in this podcast. Welcome to Animal Spirits with Michael and Ben. Michael, I have a take to get off my chest for you today. Someone asked me last week, what are you thinking about? What's going on? What are you, what's percolating in your brain about the markets? And my thought is this decade is about market amnesia. Okay, I said before that the market can really only focus on one thing at a time. I think if you just add up all the stuff that we've been through from the pandemic and all the stuff that went on with that, the meme stock craze, the 9% inflation, the rates going from 0% to 5%, the remember the little Silicon Valley bank dust up that last year for like a weekend? Pretty sure I wrote a 1907 post about that. It lasted at least five days. You had the carry trade blow up was a thing. Liberation day, obviously. Now the U.S. bombing Iran. It just kind of feels like investors get jittery when this stuff happens. Maybe the market nose dives for a little bit and then we kind of forget about it and move on. And I started talking about this last week about how the whole lol, nothing matters kind of thing. But Mike Bird from the Economist wrote a piece on this and he said this is the headline that a bunch of people sent us this because we had discussed this last week. Investors ignore World changing news. Rightly, the nothing ever happens market. And I almost think that this sort of market amnesia is a good thing. If you're a successful long term investor, you almost need this. And I know a lot of people think, well, well eventually this ends badly. But this, this is interesting from the Economist piece. So there, there's a paper going back to 1988. These researchers from MIT, apparently Larry Summers too was part of this. They wanted to figure out what actually moves stock prices. And then they look at five decades worth of world changing events. So they looked at Pearl harbor and the Cuban Missile crisis and the Chernobyl nuclear meltdown and they figured that the volatility of returns on the day of these news events, these geopolitical big things that happen, was less than three times as large as on an ordinary day. Several of the biggest one day falls identified by the authors occurred on days without an obvious news related spark. And I think a lot of this stuff is probably counterintuitive and I think maybe investors have finally learned their lesson on this stuff. And this is another feather in the cap of my idea that investors are becoming better behaved because it's like listening we've been fooled a million times on these headlines this bad thing's going to happen, that bad thing's going to happen. I'm just going to ignore it all. And I think that actually this is another step in the right direction for investors. Thoughts?