This week we’re going to keep on pricking bubbles with a fellow cynic of the sycophants and stenographers. Here to help us is David Trainer of New Constructs, whose company makes “robo-adjustments” to the reported accounts of 1000s of listed companies and tries to unearth the real financials behind the content marketing from company investor relations teams.For more on Bubble Trouble, including transcripts of the show, visit us online at http://bubbletroublepodcast.comYou can learn more about Richard at https://www.linkedin.com/in/richard-kramer-16306b2/More on Will Page at: https://pivotaleconomics.com(Times below correspond to the episode without considering any inserted advertisements.)In this episode of Bubble Trouble, guest David Trainor, the founder of New Constructs, delves into his background in economics and statistics, his time at Credit Suisse, and his perspective on market bubbles and financial accountability. The discussion ranges from the detrimental effects of rapid, superficial analysis and reporting pervasive in today's investment industry, to the importance of rigorous fundamental analysis in discerning true business value. The conversation also touches on companies' strategic overstatement of profits, the ill-effects of unchecked capital allocation, and the role of artificial intelligence in future financial analytics. As the founder of New Constructs, David highlights how his company is helping investors uncover the real financial situation behind companies' reported accounts.00:00 Introduction00:57 Part One01:02 Guest Introduction: David Trainor01:26 Understanding New Constructs02:22 The Cynicism in Wall Street03:02 David's Backstory and the Tech Bubble04:11 The Role of Accounting in Business05:37 The Reality of Wall Street07:42 The Boy Who Cried Wolf: A Market Perspective08:27 The Intentionality of Market Bubbles15:44 The Impact of Algorithmic Trading18:28 The Difference Between Investing and Speculating23:49 The Challenge of Limited Company Disclosure26:12 Part Two27:34 Discussing the Spectrum of Corporate Ethics27:42 Highlighting Notorious Corporate Scandals28:05 Elon Musk: Genius or Snake Oil Salesman?28:46 The Reality of Earnings Distortion29:09 The Unsettling Truth About CFOs and Wall Street Analysts29:40 The Role of Investor Relations Firms30:37 The Problem with Superficial Analysis33:43 The Art of Investing: A Touchy Feely Approach35:55 The Role of AI in the Future of Financial Analysis47:18 The Dangers of Overstating Profits and Zombie Stocks50:57 Closing Thoughts and Future Predictions50:59 Credits Hosted on Acast. See acast.com/privacy for more information.