The Daily Ticker: Meme Stocks vs Value Plays. Today we welcome David Trainer from New Constructs to the Daily Ticker podcast. How to invest in stocks.

New Constructs | David Trainer
newconstructs.com

B. The market has become volatile and choppy recently after a steady uptrend earlier in the year
1. Many traders are trying to make up for missed gains and overtrading
2. Losses hit new traders hard but become a business expense for experienced traders
C. Question: Do you think we're in a reversal or is the market just taking a break?

II. Market Trends and Investor Behavior
A. We've seen some reversals this year but the market has bounced back
1. Meme stocks have returned showing high speculation
2. The Fed is taking a slow approach to change behavior long-term
B. Markets used to move slower but now focus on quarterly returns and high frequency trading
C. Holding periods for stocks have gotten extremely short
D. Fundamentals provide discipline and peace of mind versus speculation

III. Growth Stocks and Valuations
A. Need criteria to determine when an investment thesis is no longer valid
1. Fundamentals or technical reasons can trigger this
B. Many traders ignored overvaluation as some growth stocks kept rising
C. Important to consider risk/reward and not just speculation

IV. Assessing Fundamentals
A. Fundamental risk/reward similar to having a moat around a business
1. Growth appreciation period shows width of moat
B. Must check company's profitability, valuation, competitive position
C. Patience required to find ideal investments

V. Healthcare Stocks
A. Cardinal Health - neutral rating but could improve
1. Margins declining but capital efficiency improving
2. Steady economic earnings and return on invested capital
B. Rating direction important, stock seems undervalued

VI. Consumer Stocks
A. Target
1. Earnings dropped but could improve if margins rebound
2. Need to monitor results to see if bullish thesis still holds

B. Walmart
1. Stock seems too expensive based on expectations
2. Must significantly beat forecasts to justify valuation

VII. Speculation vs. Investing
A. Kodak - speculative spike and crash example
B. Fundamentals provide conviction and sustainability
C. Structured approach enables discipline and consistency

VIII. Conclusion
A. Philosophy and goals important - investing vs. speculating
B. Meme stocks disconnected from fundamentals
C. Different to trade vs. invest in speculative stocks

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