Market Rotation, Fed Hype, and the Case for Long-Term Value Investing - 12/13/2025

This episode features the Investment Committee discussing the mixed market data and the potential rotation from growth stocks (like the MAG 7) to value stocks and the broader market (Russell 2000). The hosts explore current market valuations, noting the stock market is expensive with double-digit returns baked into current prices. A major theme is the hosts' commitment to long-term value investing, emphasizing the discipline to focus on data and math over the distracting "soap opera" narrative surrounding the Federal Reserve, despite recent dovish statements and changes in the federal funds rate. They also examine gold as a way to preserve long-term purchasing power in an inflationary environment, arguing it reflects the dollar's decline rather than just market movement. The conversation concludes by referencing the emotional lessons and high margin debt levels noted in the historical book 1929.