A favorite podcast: Stocks Are in the ‘Death Zone.’

Posted By on February 25, 2023

Jack Hough is a favorite Barron’s Magazine writer and #streetwise podcast host wrote “another” interesting investing article and interview this week:

U.S. stocks have entered the “death zone,” a top Wall Street strategist wrote this past week. I detected a bearish undertone.

The phrase is used by mountaineers to describe heights where humans can’t live for long. Survival is said to depend on speed or supplemental oxygen. I recommend just picking hobbies that don’t have death zones. In fact, I’m cautious on most zones: flood, no-fly, hot, impact, euro. I’ll spend time in my comfort zone, but I prefer my happy place.

To learn more about this high-alpine alert for investors, I reached out to its author, Mike Wilson, chief investment officer at Morgan Stanley. He mentioned Into Thin Air, a 1997 book about an ill-fated Everest expedition. Just as oxygen-starved climbers became confused by what they saw, so have liquidity-soaked investors today, he says. The best evidence for that, according to Wilson, is an exceptionally low “equity risk premium.”



Desultory - des-uhl-tawr-ee, -tohr-ee

  1. lacking in consistency, constancy, or visible order, disconnected; fitful: desultory conversation.
  2. digressing from or unconnected with the main subject; random: a desultory remark.
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