01:07:44 · Scott Galloway
If I had to focus on two messages that send the right signal, it would be restoring opportunity and prosperity for America's youth and committing to defending Europe against a murderous autocrat. You can only pick... There's so many messages you could go with. The close third might be making health care more affordable. But the Democrats... Again, we were talking about this last week. Great CEOs. It's not about what they do. It's about what they don't do, and we keep talking about Apple. Look what Apple decided not to do, not to get into the AI race. Their stock is up more than any any of the Mag seven this year. The Democrats are gonna have to show real messaging discipline. There's a lot of things they could go for. They're gonna have to put two, maybe three things to focus on to ensure, to to convert this girlfriend into, you know, a marriage, if you will.
01:08:39 · Ed Elson
[01:08:39] S3: Yeah. I mean, I think what I'm gonna wanna see from the Democrats is a focus on the wealth transfer from young people to old people. And one, I wanna hear them take it seriously. I want them to acknowledge what's happened. I want them to be vocal about that and show us that they understand what the problem is. But then I wanna see a solution. Like, I wanna see actual tax reform here. And I think there are a lot of different ways that you could go with it, but I want them to be thoughtful and surgical about how we fix it. Maybe it means looking at income tax versus capital gains tax, maybe trying to equalize them, but at the same time, maybe that's not surgical enough because you're not identifying the specific problem, which is that the boomers have accumulated vast amounts of wealth at the behest of young people. Maybe it's looking at social security, having tough conversations about that. Maybe it means means... Means testing Social Security. I mean, a lot of different avenues you can go down, but I do wanna see the Democrats come up with a plan that actually addresses it. Because one thing I could see them doing is saying, we we care about young people, and then they don't do anything about it. They basically just make it a talking point. At which point, young people certainly will turn on them. But, yes, this election was certainly a vote of no confidence among young people. Young men specifically, I mean, I felt this back in '24, which is that I think that young men, what they liked about Trump was that he was kind of a bro, and that was basically it. He went on the podcast. He talked about women. He kind of had this bro attitude that young people were like, oh, that's kind of funny. Maybe I like that. And I said this from the beginning. Yes. It's powerful, but for a very short amount of time. I mean, the half life on liking him for that reason was a a couple of months long, And that's what we saw. And then suddenly it ran out, and they were like, oh, this was a this was a joke. We were completely lied to. What were we doing? And then they came to their senses, which is incredibly heartening to see. But we are gonna need some... To see some real action from the Democrats to address this inequality problem, specifically between the young and the old. And it'll be interesting to see what they come up with.
01:10:45 · Ed Elson, Scott Galloway
I hope they come up with something good. [01:10:47] S0: I just wanna say I'm really heartened. I I do think that, you know, there's a lot of candidates on the far left that I'm not a big fan of, but I do think it's... I am heartened by how optimistic you feel, and I like how people such as yourself at your age are getting bigger platforms and don't have to wait till you're 45 to get a show on MS Now or whatever. [01:11:08] S3: I would, but I work with you, so that's why I get that luxury, so thank you.
01:11:12 · Scott Galloway
[01:11:12] S0: Go on. But I do think it's important that people my age who are maybe a little bit, I don't know, rattled by some the policies of what I'll call the far left recognize, I've got maybe another twenty or thirty years on this planet. You've probably got another eighty or one hundred, and it's very exciting to see a youth movement and the energy. You never get to calibrate the next movement, but it's just exciting to see people of your generation this excited and invested in America. It's a very hopeful moment. I just hope that we don't waste it and that we hold onto it. Again, we need to offer your generation the same opportunities that my generation was so blessed to have. And I think... I'd like to think this was this was that moment and that the American arc is jagged, but it does bend towards justice and prosperity. And I think the whole world was celebrating yesterday. This wasn't a... Let's interpret what this means. In Melbourne, they were partying like crazy. I mean, the entire Western world is like, oh, thank God. Dad has been such a wonderful guy. He gets it wrong. He's loud, occasionally practices his karate moves at Thanksgiving, and it's ick, but he's a good man. He's a good man, and he protects the neighborhood, and he's generous. And then all of a sudden, he developed a meth addiction, and we weren't sure we were ever gonna get dad back. And it feels like yesterday, dad came back from rehab and seems to be him again. And I think the whole world has a greater appreciation for American ideals, American laws, American markets, American capital formation, American empathy for people outside of America. The most transformative thing about America hasn't been our might, hasn't been our strength, or even our wealth. It's been the fact that we see a mutually vested interest in the success of others, that every human is blessed with certain inalienable rights that afford them dignity. And when we afford dignity and opportunity to people we will never meet, people who will never be American citizens, it benefits all of America. That is what has been transformative about America.
01:13:24 · Scott Galloway, Ed Elson
There have been great powers with as much might as us, but there's never been a nation that has been this empathetic and this focused on having mutual beneficial relationships with other people by providing them dignity, providing them opportunity, and recognizing that it creates a virtuous wonderful circle. And I feel like that circle has been squared again for the first time, in the last decade. [01:13:49] S3: Amen. Agree. Okay. Let's take a look at the week ahead. We'll see inflation data from the consumer price and producer price indices for October. We'll see earnings from Constellation Energy, Skydance, CoreWeave, Cisco, Nebius, and Cerebras. Wow. CoreWeave, Nebius, Cerebras. Those guys have gotten crushed. Scott, any predictions? [01:14:06] S0: I'm just going... I'm just fascinated by this thing that Tom Lee said. The Deutsche Bank did the analysis and said that whenever there's been... That whenever Democrats have taken control of the Senate, regardless of the politics or the situation, the markets have ripped up. You know, markets on average are up eight or 9% a year. Whenever this has happened, markets are up 12% on average. So my prediction is we're gonna go 21 for '21, and in the next six months, we're gonna see an above above average returns in the S and P.
01:14:06 · Scott Galloway, Ed Elson
[01:14:06] S0: I'm just going... I'm just fascinated by this thing that Tom Lee said. The Deutsche Bank did the analysis and said that whenever there's been... That whenever Democrats have taken control of the Senate, regardless of the politics or the situation, the markets have ripped up. You know, markets on average are up eight or 9% a year. Whenever this has happened, markets are up 12% on average. So my prediction is we're gonna go 21 for '21, and in the next six months, we're gonna see an above above average returns in the S and P. [01:14:37] S3: My prediction, I think that the Democrats have been caricatured as these AI abolitionists. The data centers are over. They're gonna ban them. I don't think that's happening. I think we'll see some thoughtful regulation. I think these Democrats are sensible. Yeah. You might see some pauses, but come on. That's, in the grand scheme of things, not a big deal. I think that this is gonna be the era of sensible AI regulation. This episode was produced by Claire Miller and Alison Weiss and engineered by Benjamin Spencer. Our video editor is Jorge Cauti. Our research team is Dan Shalon, Kristen O'Donohue and Mia Silverio. Jake McPherson is our social producer. Drew Burrows is our technical director. And Catherine Dillon is our executive producer. Thank you for listening to Prof Markets from Prof G Media. If you liked what you heard, give us a follow and tune in tomorrow for a fresh take on the markets.