Melt-Up or Melt-Down?
Don and Tom take on the ever-persistent phrase “This time it’s different,” as Bloomberg and NYT articles suggest AI, financial fragmentation, and inflation have permanently changed the investing game. The duo questions whether these changes actually warrant different investing behavior—or if they’re just the latest in a long line of panics dressed up as paradigm shifts. Along the way, they debate market melt-ups, the logic of diversification, and why equities pay more (hint: it’s not because they’re safe). Listeners call in with questions about ETFs in IRAs, Roth conversions later in life, and tax-savvy asset allocation across accounts. Plus: a smoking ban in an Air Force hospital that got Tom’s dad reassigned to nowhere-Maine, and Don fantasizes about a WWII-themed heaven.
0:04 Perspective from aging: we’ve heard “this time is different” before
1:58 AI panic, financial fragmentation, and inflation—Bloomberg’s argument
3:31 Don and Tom challenge claims of “new” market conditions
5:08 AI voice cameo: Cath makes her show debut
6:05 What should investors do if things are different?
9:00 NYT’s Jeff Sommer warns of a potential market “melt-up”
10:08 Irrational exuberance: unprofitable stocks soaring
12:57 Why risk still pays: stocks go up and down
15:02 Smooth ≠ profitable: bonds are boring, stocks reward fear
18:23 Listener asks: Why own international if U.S. wins?
20:34 Diversification vs. chasing past performance
23:42 Call: ETFs vs. mutual funds inside retirement accounts
29:36 Call: Should a 79-year-old convert to a Roth?
36:53 Call: Asset location strategy and inherited IRA cash flow
41:36 Don’s final advice: no tax tricks—just make a plan