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InvestED: Ep. 199 - Recession Prepping?

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by: Phil Town
Phil Town
Hedge fund manager, best-selling author
Summary

This week Phil and Danielle discuss prepping for the next recession.

Seth Klarman published a paper to his investors that is a little scary.

It basically takes a grim position on the economy and where we're at.

We have a rainstorm due. It didn't come last year. It could come this year. It could come next year. But, it's coming."- Phil Town

This week Phil and Danielle discuss prepping for the next recession. Seth Klarman published a paper to his investors that is a little scary. It basically takes a grim position on the economy and where we're at. We're at the end of a long credit cycle with a ton of debt, there's the potential of recession, potential depression, potential wars, potential riots. A lot of really unpleasant things can happen at the end of a credit cycle when you simply have too much debt worldwide.

We also talk about why Phil doesn't think it doesn't hurt to be in cash for 3 years if you're in cash when it all hits the fan and you can take advantage of that. The goal is to have capital available to invest when everybody else thinks it's the end of the world. Rule #1 investors want to invest in 1932 after the depression hit. We don't want to invest in 1999 during the dotcom boom. We don't want to invest in 2007. We want to buy fear and sell greed.

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