Worthwhile overview of many key economic trends now in motion…
Danielle DiMartino Booth of Quill Intelligence believes it’s obvious that a recession is already upon us, and it might only get worse from here. She joins Jay to discuss inflation, supply constraints, the housing market and, perhaps most importantly, how to protect your wealth in our current economic environment. Here is a direct video link.
A note regarding the discussion about investing in companies with high free cash flow: high free cash flow and low debt significantly increase the likelihood that companies (and households) make it through periods of recession and other adversity–essential. It does not mean asset prices will not lose value during bear markets and take years to recover your entry price (even if the companies survive long-term).
Before buying any investment, it is essential to consider the years it could take to recoup our principal and ensure that it works within our overall investment plan and risk tolerance. Individual bonds (not funds or ETFs) have prescribed maturity dates and semi-annual interest payments. There are zero assurances with things like real estate, commodities, cryptocurrencies, and equities. Eyes wide open.
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