$1 Million is the Worst Amount of Money (EP. 459)

·1 hr 4 min·5 clips

Michael explains how the MAG7 knocked 100 points off the S&P, yet the other 493 stocks kept the market afloat.

This episode of Animal Spirits features hosts Michael and Ben discussing market dynamics, wealth psychology, and economic trends. They analyze current equity performance and explore listener perspectives on financial milestones. The S&P 500 is down about 4% year-to-date, largely driven by the "Mag Seven" stocks like Microsoft, Google, and Apple. The Russell 3000 Value Index outperformed its growth counterpart by 11.7% in the first quarter, the largest spread since 2001. ExxonMobil, Walmart, and Micron are highlighted as significant positive contributors offsetting declines elsewhere. Micron's market cap reached approximately $426 billion, having roughly doubled since October. A Wall Street Journal report indicates 19% of Americans are now considered poor or near-poor, down from 30% in 1979. Adjusted for inflation, upper-income thresholds have risen from $144,000 in 1970 to $256,000 today. The hosts read an email from a 40-year-old listener who just crossed $1 million in investable assets and calls it "the worst amount of wealth." This listener notes a 6% portfolio drop in March erased an amount equivalent to his wife's annual teaching salary. They reference a scene from "Succession" where a character calls $5 million "a nightmare." Gas prices are discussed, with filling an F-150 now costing nearly $150, though the hosts question its broad economic impact. A 2010 Brookings Institute paper found consumer unhappiness increased when gasoline surpassed $3.50 and $4 per gallon. DoorDash's market share in food delivery grew from about 20% in 2016 to roughly 70%, while GrubHub's fell from 70% to 10%. The typical U.S. home is 44 years old, with only 12% of homes being 14 years or newer, suggesting a future need for extensive renovations. The tone is casual and conversational, blending data analysis with personal anecdotes and listener interactions. The style is educational yet informal, featuring tangents on topics like dolphin behavior and spray sunscreen. Investors interested in market structure and behavioral finance will enjoy this episode. Listeners seeking a tightly focused, single-topic narrative might find the discursive style less appealing.

As heard by us

A loose market chat that turns headlines, data surprises, and gas prices into a clearer read on the tape.

The episode moves from a one-year-ago market crash to a sharp upside surprise in the data, then to what it costs to fill up a RAV4, a Camry, or an F-150.

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Why you'd press play

You get the cleanest read on this market by starting with gas, surprise data, and correction talk.

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