Depressed Day Traders | Animal Spirits 477

Summary

Michael Batnick and Ben Carlson discuss new S&P 500 all-time highs driven by AI, emerging markets trading at a record valuation discount, rising retail participation in South Korean equities, and the struggles of day traders. The conversation also covers gambling, early retirement fueled by market gains, and the end of a multi-year housing recession.

• The S&P 500 continues to hit new all-time highs with AI capex as the primary driver; forward earnings are breaking out.
• Emerging markets, now heavily weighted toward technology (Taiwan/South Korea), trade at a record discount to the S&P and offer a cheaper AI exposure.
• South Korean household stock ownership is rising fast from a low base, with a huge runway for equity inflows as assets shift away from real estate.
• Day trading remains a losing game for most young men, who trade too frequently and feel like failures.
• Rising stock and home values are enabling a wave of early retirements among older Americans.
• The housing recession that began in 2022 appears to be over, though prices remained resilient throughout.
• The hosts share entertainment recommendations including 'To Live and Die in LA', 'The Westies', and 'Lioness'.