What Good News on the Economy Means for Investors

1. KSKara Swisher0:00

   The stock market is hitting record highs. Job numbers are good, inflation is falling, and the Federal Reserve might be cutting interest rates also. Um, consumer happiness is rising, according to all those consumer happiness, um, s-surveys. They're moving, it's ticking upward. Looks like the US economy might be able to avoid a recession according to a recent survey. Um, economists not even a soft landing. Um, what do you, uh, what do you think we... What's going on? Treasury Secretary Janet Yellen was touting soft landing weeks ago and said, "My hope is it will continue." I guess we're continuing to soft land if at all. Um, what is your take on all the good news?

2. SGScott Galloway0:34

   It, what strikes me is more so than all the good news, which is exceptional, is the consumer dissonance or the citizen dissonance. And that is Americans have a unique ability to credit their character and their grit for the raise they're getting-

3. KSKara Swisher0:48

   Mm-hmm.

4. SGScott Galloway0:48

   ... and then blame the government for inflation.

5. KSKara Swisher0:50

   Mm-hmm.

6. SGScott Galloway0:50

   And so even though the, even though the, uh, wages are rising faster than inflation now, there's real wage increases. They still blame the government.

7. KSKara Swisher0:58

   Mm-hmm.

8. SGScott Galloway0:59

   It's just this, this quandary. It must be driving-

9. KSKara Swisher1:00

   Well, it's ticking up. It's ticking up. That, that Michigan survey just suddenly went the other direction.

10. SGScott Galloway1:04

    I hope so.

11. KSKara Swisher1:05

    Yeah. Yeah.

12. SGScott Galloway1:06

    But it's just very strange. The White House doesn't get any credit for it.

13. KSKara Swisher1:09

    Yeah, it's starting to.

14. SGScott Galloway1:10

    And, uh, I hope you're right. But... And you know, this goes to my win. We literally have... Now granted, it's not distributed equally. We have a- a... No one could have predicted if someone had said America is gonna pull off this economy or they're gonna figure out a way to have the lowest inflation in the G7. By the way, they're gonna massively increase for all the shit posting and all the far right likes to say, "Drill, baby, drill."

15. KSKara Swisher1:35

    Mm-hmm.

16. SGScott Galloway1:35

    We're producing more energy than ever. We're the largest-

17. KSKara Swisher1:37

    Yeah, yes.

18. SGScott Galloway1:37

    ... energy producer in the world.

19. KSKara Swisher1:39

    We are, indeed. Yeah.

20. SGScott Galloway1:40

    And if you look at, if you look at our competitive a- advantage against China-

21. KSKara Swisher1:43

    Mm-hmm.

22. SGScott Galloway1:43

    ... if China decides to get into a hot war with anyone-

23. KSKara Swisher1:46

    Yeah.

24. SGScott Galloway1:46

    ... uh, and they start su- s- uh, uh, and at any number of choke points their energy supply gets, gets, um-

25. KSKara Swisher1:53

    Yeah.

26. SGScott Galloway1:53

    ... gets shut down-

27. KSKara Swisher1:54

    They're gonna have to invade Russia. They're gonna have to invade Russia first. (laughs)

28. SGScott Galloway1:55

    They would, they would be in such a world of hurt. And we are energy independent. We-

29. KSKara Swisher1:59

    Yeah.

30. SGScott Galloway2:00

    We're e- not only ener- energy independent, we produce more energy than we consume, which is remarkable given what gluttons we are.

Episode duration: 8:11