IN THIS EPISODE, YOU’LL LEARN:

• How markets from the 1800’s can inform how we view our market today.
• How the frauds of today like FTX draw similarities to frauds of the past.
• Why market regulations developed in the US.
• How the crypto market resembles the early days of the stock market.
• Where the term “bankruptcy” comes from.
• Other fascinating facts and stories from the past.

TRANSCRIPT

Disclaimer: The transcript that follows has been generated using artificial intelligence. We strive to be as accurate as possible, but minor errors and slightly off-timestamps may be present due to platform differences.

[00:00:00] Trey Lockerbie: In this episode, I welcome back financial historian Jamie Catherwood. Jamie is a client portfolio specialist at O’Shaughnessy Asset Management and also the author of the popular blog, Investor Amnesia. In my conversation with Jamie, from about nine months ago (Episode 427), we dove into what drives market bubbles, fraud, and mania.

[00:00:21] Trey Lockerbie: After witnessing the largest asset bubble in history begin to burst, I wanted Jamie’s historical perspective on a post-bubble world. In this episode, you’ll learn how markets from the 1800s can inform our understanding of the market today, how the frauds of today (such as FTX) draw similarities to frauds of the past, exactly why market regulations were developed in the US, how the crypto market resembles the early days of the stock market, where the term ‘bankruptcy’ originates from, and a host of other fascinating facts and stories from the past.

[00:00:49] Trey Lockerbie: It’s always a pleasure to speak with Jamie and hear his encyclopedic knowledge of financial markets. I hope you enjoy it. So, with that, here’s my conversation with Jamie Catherwood.

[00:01:02] Intro: You are listening to The Investor’s Podcast, where we study the financial markets and read the books that influence self-made billionaires the most. We keep you informed and prepared for the unexpected.

[00:01:22] Trey Lockerbie: Welcome to The Investor’s Podcast. I’m your host, Trey Lockerbie, and I’m thrilled to welcome back to the show Jamie Catherwood. Jamie, welcome back.

[00:01:30] Jamie Catherwood: Thank you so much for having me. I’m honored to be here.

[00:01:32] Trey Lockerbie: Well, given the last year we just experienced and it being about a year since you and I last spoke, as a historian, I’ve been eager to ask you a question that has come up a lot, what period in history most resembles today?

[00:01:45] Trey Lockerbie: I know that many have compared today to the 1970s, but I figured you might have different perspectives and possibly draw comparisons to other periods in time that resemble what we’re seeing today. 

[00:01:55] Jamie Catherwood: Yeah, so anyone that’s familiar with my work will know that I like to look at things before the 1970s. 

[00:02:06] Jamie Catherwood: I’m talking about the 1870s, In all seriousness, if you want to read about it, my colleague at O’Shaughnessy Asset Management, Ehren Stanhope, a member of our research team and client portfolio manager, wrote a great paper called “The Great Inflation.” You can find it on our website, osam.com, where he walks through the similarities and, more importantly, the key differences between the 1970s and today and why this is not like the 1970s Great Inflation.

[00:02:38] Jamie Catherwood: But to actually answer your question, I would say that the period I find most interesting in terms of a parallel to today would be the 1920s, which I’m sure most people know by now. I’ve found it really interesting since, honestly, COVID started, the similarities in progression and timeline between the early 1910s and 1920s with today.

HELP US OUT!

Help us reach new listeners by leaving us a rating and review on Apple Podcasts! It takes less than 30 seconds, and really helps our show grow, which allows us to bring on even better guests for you all! Thank you – we really appreciate it!

BOOKS AND RESOURCES

• Investor Amnesia Website.
• Sunday Reads Blog.
• Osam Paper on The Great Inflation.
• Related Episode: Listen to Jamie Catherwood, The History of Bubbles, Mania & Fraud–TIP427 or watch the video.

NEW TO THE SHOW?

• Check out our We Study Billionaires Starter Packs.
• Browse through all our episodes (complete with transcripts) here.
• Try our tool for picking stock winners and managing our portfolios: TIP Finance Tool.
• Enjoy exclusive perks from our favorite Apps and Services.
• Stay up-to-date on financial markets and investing strategies through our daily newsletter, We Study Markets.
• Learn how to better start, manage, and grow your business with the best business podcasts. 

P.S The Investor’s Podcast Network is excited to launch a subreddit devoted to our fans in discussing financial markets, stock picks, questions for our hosts, and much more! Join our subreddit r/TheInvestorsPodcast today!

SPONSORS

• Get personalized, expert advice that helps you see things clearly with ATB.
• Help companies protect customer privacy in the face of endlessly growing data breaches by investing in Atakama today.
• Talk to your clients about Desjardins Responsible Investment today and support what’s right for society and what’s good for business.
• Take stock of your finances and investing strategy with Betterment.
• If your business has five or more employees and managed to survive Covid you could be eligible to receive a payroll tax rebate of up to twenty-six thousand dollars per employee. Find out if your business qualifies with Innovation Refunds.
• Let an expert do your taxes from start to finish so you can relax with TurboTax.
• Support our free podcast by supporting our sponsors.

CONNECT WITH TREY

CONNECT WITH JAMIE

PROMOTIONS

Check out our latest offer for all The Investor’s Podcast Network listeners!