In this episode, Scott discusses tariffs and the markets.
Chapter 1: Who is Scott Becker and what is this episode about?
Chapter 2: What is the capital class and how does it relate to equity ownership?
This is Scott Becker with the Becker Private Equity and Business Podcast. Today's discussion suggested by Nancy Stevens is post tariff stress disorder, PTSD. Now, many of us lost money in the markets last week. And one of the fascinating things about the markets is got about half the country is part of what you call the capital class owns equities.
but half doesn't own equities and you see this across twitter the amount of sort of schadenfreude from those people that don't own equities, sort of almost taking some dark pleasure in those that own equities, losing some money. And again, you could see why this happens.
If people that owned equities got rich the last bunch of years, and people that didn't, barely scraped by, and with okay wages and tough inflation, you could see where there's a little bit of resentment towards the Capra class or the equity class. And I get it. I don't... I don't think it's great, but I totally get it.
It's like when SoundTown is down 70% and one of my friends has been bragging about how well he's done in SoundTown, I can't help but have a little bit of schadenfreude about SoundTown. But that's not the point today. The point of today is the market's lost about 10% on Thursday and Friday, which is the biggest two-day fall since 2020. And there are multiple lessons out of this.
First is the great, the best lesson is by a guy named Morgan Housel. And Morgan is a brilliant, brilliant writer who has written a book called The Psychology of Money. He's truly a bright guy. And he has this great, great take from the other day where he says, look, You can hate Trump and how destructive this is, and that's your own decisions, whether you hate or don't hate him.
But he also has this concept in that even though the markets are falling, you could still go out and enjoy the day. You could still go and have coffee. You could still smell the roses. You could still do a lot of other things, even if you don't like what's going on in the markets.
You know, I'm trying to see if I could find his exact quote, but it was a beautiful concept on this that even though you hate this, you could still enjoy the day and everything else that's going on. What else did he say? He said a couple of other brilliant things this weekend. Morgan Housel did. Good day for a walk. Good day for a hike. All of those things. And here's this quote, and I love this.
You could simultaneously dollar cost average remain long-term optimistic, not panic. enjoy the outdoors, kids, good food, et cetera, and realize how incredibly destructive and unnecessary this is. Now, I don't know if I agree with them on all these things or not, but I think it is well stated that you could still do a lot of positive things, notwithstanding the market having a horrible few days.
So what Nancy calls post-traumatic stress disorder, PTSD, we hear you. We don't disagree, but you could still enjoy life and keep on moving forward. There's a lot to be said for just living life and moving through the tumult. Thank you for listening to the Becker Private Equity and Business Podcast. And thank you, as always, to Chanel Bunger, our producer, the best in the business.
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