The Capitalist Investor - Episode 216

Welcome to another episode of The Capitalist Investor, where your hosts Derek, Tony, and Luke dissect this week’s financial happenings with a keen investor’s eye. Today’s episode is jam-packed with insights and discussions that tackle everything from shrinkflation and Super Bowl ad economics to the unexpected inflation rates shaking up the markets. We even dive into the unusual territory of dating apps and their financial thresholds for love.

Optimism Amidst the Earnings Season

The market is abuzz with an 11% expected earnings growth for the year—a target it’s on track to meet in the initial quarter. In this episode, the hosts discuss what this projection means for investors and how to position oneself to capitalize on this growth. They delve into whether these numbers reflect genuine growth or are a byproduct of factors such as shrinkflation and misleading corporate strategies.

The Shrinkflation Phenomenon and Its Impact

Shrinkflation—the tactic of reducing product size while maintaining prices—is put under the microscope after a Super Bowl ad by Timu spotlighted the issue. President Biden’s critique of corporations using shrinkflation as a means to sneak in price hikes hits hard for the middle class. The hosts share their own run-ins with this sneaky pricing strategy and mull over its long-term psychological effects on consumer behavior.

Super Bowl: A Cultural and Economic Touchstone

Beyond the game—which, by the way, attracted a record number of viewers as discussed—the hosts remarked on the quality and exorbitant costs of Super Bowl ads, including a political ad that stirred the pot, and the pervasive gambling adverts from platforms like DraftKings and FanDuel. Luke emphasized how these gambling ventures signaled economic desperation and hinted at broader societal issues. Add to this a spotlight on a controversial ad for a Chinese shopping app whose associations warrant caution.

Navigating Inflation and Interest Rates

Facing an unexpected inflation rate of 3.1%, markets are bracing for corrections. The episode discusses the Federal Reserve’s possible maneuvers, such as rate cuts, in pursuit of balance and the search for high returns in shaky times. Speculations about future rate hikes and potential credit events color the conversation, offering investors insights to consider as they plan their next moves.

Credit Scores and Love: Financial Knowledge in Relationships

In a quirky twist, the hosts debate a dating app’s policy requiring a credit score over 650 for matchmaking success and ponder whether this trend points to an overemphasis on finance over romance. Additionally, they consider Tinder’s rumored $500 monthly subscription, drawing parallels to high-end social clubs and what these trends say about the modern dating economy.

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Keep Listening to The Capitalist Investor:
Episode 15:
Spending Strategies in a Bear Market, Ep #15
Episode 31:
Handicapping the 2020 Election, Ep #31
Episode 47:
11 Investments in Your Home That Pay Off, Ep #47
Episode 63:
Jeff Bezos and Amazon: Past, Present, and Future Ep #63
Episode 79:
7 Ways Biden Plans to Tax American Families (Part II), Ep #79
Episode 95:
5 Beaten Down Stocks to Buy on the Dip, Ep #95
Episode 111:
Special Episode – Talking Energy with Daniel Turner, Ep. #111
Episode 127:
Retail Earnings Tank & What The Heck is Greenflation? Ep. #127