Investing Beyond the Magnificent Seven
01/02/25 • 55 min
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What if the next big investment opportunity isn't where you'd expect it to be? Join us as we kick off our 2025 podcast series with Glenn, where we explore the world of 'spice' stocks—those hidden gems in burgeoning sectors like data centers, cloud services, renewable energy, and quantum computing. These mid-cap and smaller companies offer a unique way to spice up your portfolio with high alpha potential, balancing risk and reward through a barbell strategy. Discover the importance of selecting companies with strong profitability and cash reserves, ensuring your investments remain stable even amidst the allure of high-growth opportunities.
Meet the intriguing players like Palantir and IonQ in the high-risk investment space. We critically assess Palantir's impressive market cap against its revenue, delving into its heavy reliance on government contracts, while also exploring IonQ's futuristic quantum computing technology with its potential to revolutionize encryption and cryptocurrency security. The conversation emphasizes the need for a cautious approach, balancing the excitement of high-risk opportunities with the importance of measured investment strategies.
Explore the strategic potential of mid-cap stocks as we challenge the dominance of mega-cap giants. With Glenn's insights, we scrutinize the potential pitfalls of over-reliance on stocks like Apple, Google, and Tesla, considering regulatory pressures and operational challenges. Uncover the sweet spot for investors seeking long-term growth by allocating 10-15% to mid-caps, especially in emerging sectors like AI and healthcare. This episode provides a comprehensive guide to building a robust and balanced portfolio, positioning mid-caps as a stable and attractive alternative in a market often overshadowed by its larger counterparts.
Straight Talk for All - Nonsense for None
Please check out our other podcasts:
https://skepticsguidetoinvesting.buzzsprout.com
Please text and tell us what you like
What if the next big investment opportunity isn't where you'd expect it to be? Join us as we kick off our 2025 podcast series with Glenn, where we explore the world of 'spice' stocks—those hidden gems in burgeoning sectors like data centers, cloud services, renewable energy, and quantum computing. These mid-cap and smaller companies offer a unique way to spice up your portfolio with high alpha potential, balancing risk and reward through a barbell strategy. Discover the importance of selecting companies with strong profitability and cash reserves, ensuring your investments remain stable even amidst the allure of high-growth opportunities.
Meet the intriguing players like Palantir and IonQ in the high-risk investment space. We critically assess Palantir's impressive market cap against its revenue, delving into its heavy reliance on government contracts, while also exploring IonQ's futuristic quantum computing technology with its potential to revolutionize encryption and cryptocurrency security. The conversation emphasizes the need for a cautious approach, balancing the excitement of high-risk opportunities with the importance of measured investment strategies.
Explore the strategic potential of mid-cap stocks as we challenge the dominance of mega-cap giants. With Glenn's insights, we scrutinize the potential pitfalls of over-reliance on stocks like Apple, Google, and Tesla, considering regulatory pressures and operational challenges. Uncover the sweet spot for investors seeking long-term growth by allocating 10-15% to mid-caps, especially in emerging sectors like AI and healthcare. This episode provides a comprehensive guide to building a robust and balanced portfolio, positioning mid-caps as a stable and attractive alternative in a market often overshadowed by its larger counterparts.
Straight Talk for All - Nonsense for None
Please check out our other podcasts:
https://skepticsguidetoinvesting.buzzsprout.com
Previous Episode
Trump 2.0: What Should Investors Track?
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In this episode of Skeptic’s Guide to Investing, Steve Davenport and Clem Miller discuss what investors should be tracking as the Second Trump Administration gets underway.
Will increased energy output be addressed on Day 1? Will these policies support not just increased oil drilling but also natural gas exports and nuclear?
Will the Administration and Congress get so side-tracked by social issues and retribution against perceived enemies that it will be unable to form a bipartisan consensus to extend the 2017 tax cuts?
Will proposals by Elon Musk and his so-called DOGE to drastically slash government spending, including entitlements, be stymied by Trump’s own allies in Congress? Is DOGE just another distraction? When will Trump dump Musk?
Will there be any efforts made to build out the infrastructure needed to keep U.S. industries competitive with those of other countries?
Will Trump’s cabinet and agency nominees demonstrate the competence necessary to manage government functions effectively?
Steve and Clem also discuss and debate the weak long-term return projections of several prominent investment management firms. These projections are lower than would be implied by long-term U.S. nominal economic growth trends, but do they embed an expectation of recession? Do they reflect a substantial multiple contraction?
Finally, we discuss how we’re positions our portfolios for the opportunities and uncertainties posed by Trump 2.0.
Straight Talk for All - Nonsense for None
Please check out our other podcasts:
https://skepticsguidetoinvesting.buzzsprout.com
Next Episode
Trump Puffery: International Affairs
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Navigating political puffery reveals the absurdity in exaggerated claims made by leaders, showcasing how distractions shape public discourse and investor perceptions. Understanding these dynamics helps listeners critically assess the implications of such statements on global relationships and policy.
• Defining puffery in political terms
• Canada as the absurd notion of a 51st state
• Greenland's strategic importance and its dismissals
• The Panama Canal's exaggerated claims of ownership
• Jingoism and the Gulf of America concept
• The complexity of the Ukraine conflict and Trump's role
• Ranking the most outrageous claims discussed
Please check out our other two podcasts on Puffery Immigration Ideas and Puffery Regarding Tariffs.
Straight Talk for All - Nonsense for None
Please check out our other podcasts:
https://skepticsguidetoinvesting.buzzsprout.com
SKEPTIC’S GUIDE TO INVESTING - Investing Beyond the Magnificent Seven
Transcript
Welcome everyone to our first podcast of 2025 .
Steve DavenportIt seems unreal , after going through the
Steve Davenportconversion to
Steve Davenportthe 21st century , that we're already a quarter through this century , but time flies when you're having fun . Time flies w
If you like this episode you’ll love
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