Prof G Markets: Goldman and Apple Part Ways, Shein and Temu, and Charlie Munger’s Legacy

Market Review

Scott Galloway and Ed Elson review the recent performance of major financial indicators, highlighting significant movements in the S&P 500, the dollar, Bitcoin, and treasury yields. The S&P 500 experienced its best month in over a year, while Bitcoin reached an 18-month high, and the dollar faced a sharp sell-off. Ed notes, "The yield on ten-year treasuries fell below 4.3% for the first time since September," indicating a shift in market dynamics 1. Scott humorously comments on the state of the market, intertwining it with cultural references and personal anecdotes 2.

   

Housing Trends

The housing market is experiencing unprecedented dynamics, with home prices reaching all-time highs despite rising interest rates. Scott discusses how the average home price in the U.S. has soared from $290,000 to $420,000, while interest rates have climbed from 3% to 7% 3. This paradoxical situation has led to a decrease in demand but an increase in prices, highlighting a significant supply issue. Ed points out, "The strange phenomenon here is that demand is decreasing because mortgage rates are higher, so people are less interested in buying a home" 3.