Yesterday I had Dylan Marrello (Raging Bull Investments) back on the podcast. We talked about a bunch of different things, and listeners will either come away with food for thought on the path of the US and markets or some new investment ideas to dig into. We talked about several individual ideas, but my favorite part was the philosophical discussion about the actual purpose of financial markets and how far we have deviated from that. You can find Dylan at Marrello Capital and on Twitter.
Podcast Summary
The S&P continuing to run, and how narratives, vibes, and other short term drivers move markets.
The increasing volatility based on short term investors, leverage in the system, and the lack of fundamental investors.
Why he doesn’t prioritize macro over the individual ideas in his investing process.
How Miami International MIAX 0.00%↑ benefits from increased trading volumes and volatility.
The hyperfinancialization of markets, and the nihilism involved with sports betting and prediction markets.
How the function of markets has deviated from the original purpose, and where that might lead in the coming years.
The incentives (or lack thereof) for new businesses to go public.
How recent moves in Playboy PLBY 0.00%↑ show the short term thinking from investors.
Recent developments with Turning Point Brands TPB 0.00%↑, and why nicotine is one of the greatest businesses of all time.
How investors that don’t have experience operating a business or the ability to understand the complexities of running a business often miss the big picture when it comes to stocks.
How AI and the data center buildout interacts with the commodities cycle, and why he still likes offshore oil services.
Book Recommendation: The Fourth Turning by Neil Howe.
