In this episode of Stuck@Om, I chat with my friend Ophir Gottlieb, the CEO and Editor-in-Chief of Capital Market Laboratories. We talk about the importance of proper perspective. Ophir likens perspective to a superpower — with it, we are the best investors in the world. Yet the increase of access to and influx of information has only served to create more confusion. Ophir emphasizes that we are totally overwhelmed with data and underwhelmed with information.
With that proliferation comes the competition to be profitable. The news media doesn’t just provide news — it’s become sensationalized. There is this disconnect between a story existing, and the need to just get something printed. News has probably hurt more people’s wealth than helped it. It’s very difficult to lose wealth in the stock market. Yet it continues to happen. It isn’t because people are stupid. So how can it be? Because money is tied to the identity of self and fear that you’ll lose that identity. The stock market is driven by emotion.
Ophir and I also discuss society’s shift from a long-term orientation to one of short-term focus. Have we lost the ability to think beyond the now? We chat about Robinhood—the trading app that’s become a phenomenon—and how its impact isn’t as striking as Schwab’s move to commission-free trading. We also ruminate on the unprecedented steps that have been taken with the economy and how our expectation for a natural response to an unnatural occurrence is baseless. We are dealing with an unnatural economic impact. We can’t do the normal things when the thing we’ve created isn’t normal.
We talk about the giant leap forward in the digital realm that’s been made out of necessity. Ophir shares that he is investing in the companies that will help the world move forward in the digital transformation. Lastly, Ophir shares his thoughts on when and how to invest in the market. We cover a wide range of fascinating topics in this conversation. Be sure to listen for insight on the economy.
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Outline of This Episode
- Ophir’s background in institutional finance
- How the influx of information has created confusion
- The information asymmetry rampant in the market
- The impact of ‘noise’ on the rise and fall of the stock market
- Has humanity become short-term oriented versus long-term?
- The phenomenon of the Robinhood trading app
- How is Ophir is reading the current market opportunities
- Are we cycling into the future of american economy?
- Tech stock valuations are high—so when do we enter the market?
- How to connect with Ophir and join his community