San Francisco, Hundred Percent, Hundred Years discussed on The Meb Faber Show

Automatic TRANSCRIPT

Cash is that investors just don't think in real versus nominal terms because almost everyone thinks in terms of nominal returns but real is really the inflation is the risk for bonds and cash as well or they just are so emotionally wedded to the volatility of stocks in the short term i don't i don't really know which one is the main driver there but maybe maybe both a little bit i think the third i mean those two are perfectly valid in your hundred percent correct about the two but i think there's a third and that's the point where you've got the intersection with the road to hell and that's that forgetting about all of the micro details that we all focus on what stopped do i own what sector do i own should i be value or growth in perpetuity or this moment in time all that other kind of stuff forgetting about all that for the moment in the long term we are in a unique period of humanity that's existed for the last couple of hundred years where there is an explosion of science technology transferring into know how to ployed off in through capitalism for the benefit of humans not perfectly but consistently better than people ever forecast and all that translates over time into the capital markets and it's that upside from the part where human accumulation of science technology knowhow deployment in creative ways whether it's technology product something that somebody uses technology to produce a non technology product or just somebody with a crazy ass idea that people end up liking we are doing things that to my grandfather was born san francisco and eighteen seventy five if he had tried to describe to his grandfather the things that he would see in his lifetime but the time he died in nineteen fifty eight.

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