2023 Recession: Peter Lynch Makes a Comeback with a Warning

by | Jul 17, 2023 | Recession News | 39 comments

2023 Recession: Peter Lynch Makes a Comeback with a Warning




Peter Lynch is back on CNBC talking about the 2023 recession. In this interview he talks about how to invest in the stock market during a period of high inflation and rising interest rates, finding your edge, investing in what you know, and finding great stocks in tough times.

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★ ★ CONTENTS ★ ★
0:00 Peter Lynch is back!
1:37 Peter Lynch Explains the 2023 Recession
3:53 Lynch Explains What to Look For in a Stock
7:11 Hunting for Growers and Turnarounds
9:20 Finding Your Edge
10:45 Know What You Own

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Neither New Money or Brandon van der Kolk are financial advisers. The information provided in this video is for general information only and should not be taken as professional advice. There are risks involved with stock market investing and consumers should not act upon the content or information found here without first seeking advice from an accountant, financial planner, lawyer or other professional. Consumers should always research companies individually and define a strategy before making decisions. Brandon van der Kolk and New Money are not liable for any loss incurred, arising from the use of, or reliance on, the information provided by this video.

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Peter Lynch IS BACK with a Warning for the 2023 Recession

Renowned investor Peter Lynch has resurfaced with a stern warning for the global economy, predicting a recession in 2023. Lynch, known for his successful tenure at Fidelity Investments, where he consistently beat the market by focusing on simple yet effective investment strategies, believes that the signs are pointing towards an impending economic downturn.

Lynch’s track record speaks for itself. During his tenure as manager of the Magellan Fund from 1977 to 1990, Lynch achieved an average annual return of 29%. His ability to predict market trends and identify lucrative investment opportunities made him a household name in the investing world.

Now, with his return to the public eye, Lynch wants to alert investors to the potential dangers that lie ahead. In a recent interview, he highlighted several factors that he believes will contribute to the upcoming recession.

Firstly, Lynch points to the mounting global debt levels as a significant concern. Over the past decade, countries around the world have accumulated massive debt burdens, both public and private. This excessive debt could weigh heavily on the global economy, leading to a downward spiral of defaults and economic instability.

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Additionally, Lynch warns about the potential impact of rising interest rates. Central banks have kept interest rates low for an extended period, which has helped fuel economic growth. However, with inflation on the rise and economies recovering, policymakers are likely to increase interest rates. An abrupt hike in rates could shock markets and trigger a recession.

Lynch also mentions the growing wealth inequality as a destabilizing factor. A concentration of wealth among a few can lead to a lack of sufficient demand and weak economic growth. If this trend continues, it could exacerbate the economic downturn.

Moreover, Lynch expresses concerns about the potential bursting of asset bubbles. As investors pile into certain sectors or assets, prices can become artificially inflated, making them vulnerable to sudden collapses. Lynch warns that these bubbles are often difficult to identify until it’s too late, which can have catastrophic effects on the economy when they burst.

So, what should investors do to prepare for the impending recession? Lynch advises staying away from high-risk investments and placing greater emphasis on stable, value-based companies. He suggests thoroughly researching potential investments and focusing on undervalued stocks that have the potential to weather economic storms. Diversification and a long-term investment horizon remain crucial strategies for navigating turbulent markets.

While Lynch’s warning may be unsettling, it is essential to consider his track record and expertise. The investing world has long relied on his insights, and his return signals the need for caution and preparedness. Investors would be wise to heed his warning and take appropriate measures to protect their portfolios from the potential fallout of the 2023 recession.

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39 Comments

  1. Micheal Roper

    With inflation running at a four-decade high, the Recession is now the ‘most likely outcome for the economy and I cannot imagine being a victim of circumstances. My portfolio suffered a big hit, holding it further won’t be any good. I've heard of people netting hundreds of thousands this red season. How can I ensure this?

  2. Stephen Potter

    Given the current economic difficulties that the country is experiencing in 2023, how can we enhance our earnings during this period of adjustment? I cannot let my $680k savings vanish after putting in so much effort to accumulate them.

  3. liu zhang

    My portfoliio of $750k is down to $492k, How can I profit from the present market" , I mean I've heard of people making upto $250k in couple weeks during this crash and I'd like to know how.

  4. Dr Laszlo Lee

    Great video , a number of the most eminent market experts have been expressing their views on the severity of the impending economic downturn and the extent to which equities might plummet. This is because the economy is heading towards a recession and inflation is persistently above the Federal Reserve's 2% target. As I'm aiming to create a portfolio worth no less than $850,000 before I turn 60, I would appreciate any advice on potential investments.

  5. orhan kaya

    I wasn't financial free until my 30’s and I’m still in my 30’s, bought my third house already, earn on a monthly through passive income, and got 4 out of 5 goals, just hope it encourages someone's that it doesn’t matter if you don’t have any of them right now, you can start TODAY regardless your age INVEST and change your future! Investing in the financial market is a grand choice I made.

  6. Ângelo Afonso

    Gostei imenso do seu resumo. E claramente que o Peter Lynch é um dos analistas que mais aprecio, tal como o investidor Luiz Barsi, (maior investidor pessoa física do Brasil).

  7. T

    Good video mate. Peter is one of my favorites.

  8. Steven Juan

    A financial professional you work with could really prepare you for life. I'm glad I was able to get in touch with my coach Jackson Sten Marsh earlier this year because I was actively cashing out from my portfolio and finally earned over 370k just in the first quarter while everyone else was complaining about the downturn. Jackson Sten Marsh. has assisted us in paying off our debt and saving for retirement.

  9. Financial Advices

    Over the long term, independent of momentary market situations, the stocks of companies that are performing well in regards to the balance sheet and income statement are gonna gain value.

  10. guitarrat18

    That intro was priceless… lol

  11. Astral Scholar

    "It's hard for a company with no debt to go bankrupt"
    -Legendary Peter Lynch

  12. Agatha Brandon

    I'm wondering if folks who went through the 2008 financial crisis had it easier than me right now. The market conditions these days are really causing me a lot of stress, with my portfolio taking some big hits over the past few months and my profits dwindling. I'm worried that this could put a wrench in my retirement plans, since I can't seem to boost my stagnant reserves.

  13. jeff edwards

    Great video! Very helpful and easy to understand for the novice investor. Thank you!!

  14. David king

    Be greedy when crowds are fearful

  15. Victor Laranjahal

    I particularly enjoyed reading Peter Lynch's book, One Up on Wall Street, and I think he's got great experience enough to talk about an imminent recession. I really did learn my lesson in 2008 on how a recession can change one's financial course, both for good and for bad, and I was a victim of the latter. I have since recovered, and have been able to build up to $380k again in portfolio, but I can see the trend again, and I'm really worried about how to protect my finance this time around.

  16. Khadija Sajid

    I realized that the secret to making a million is making better investment. I always tell myself you don't need that new car or that vacation just yet and that mindset helps me make more money investing.

  17. JESSE SANTILLANO

    They’re not factoring in AI and all the overhead it’s going to safe businesses – fear monger if

  18. Jimmy Yoh

    All those so called exports always said“ there were 13 recessions in the past there was 13 recoveries” I don‘t buy this, because in the past, there was no other alternatives for the world capital to invest except in the US, but this time, we all can see the US is going down, and going down fast, and not coming back. The smart capitals are leaving the US market since there is NOTHING to invest if they are US dollar based.

  19. Chris Anthony

    We must consider safer investments with promising returns in order to plan for the future. If you approach investing with a 5-year perspective, consider bonds, index funds, etfs and bitcoin. Simply keep DCA each time you receive payment. Even during this uncertain time, my portfolio has generated over 7 figures My F.A Susan Kay Mack, deserves praise for her client-focused approach and unrivaled expertise in portfolio diversification. Invest in stocks of reputable companies. As blue chip stocks will survive recessions, some will even increase in value during them.

  20. mikatu

    nice, comparing 2 tech companies with a cruise ship company… makes a lot of sense.
    in fact meta is going down, because their business model is already over.

  21. Tom Harrison

    But the elephant in the room is the debt.

  22. Reality

    Great video. Direct and clear good information without BS or hype.

  23. Jack kota

    The fin-Market have underperformed the U.S. economy as fear of inflation hammers the prices of stock;s and bonds. My portfoliio of $250k is down to $192k any recommendation;s to scale up my return;s during this crash will be highly appreciated

  24. Dendrick Paul

    My portfolio has good companies, however it has been stalling this year. I’ve approximately $700k stagnant in my reserve that needs growth, any suggestions to grow my portfolio will be highly appreciated.

  25. Shanty Clips

    I HATE Andrew Sorkin. Such a smug little POS.

  26. LiquaFoo

    Who is editing this man’s videos

  27. PonderousSage

    I suggest a financial advisor. Or just give me all your money and I’ll stuff it in a big mattress in the back

  28. AG17

    Loved this video. Cheers mate

  29. Lisa Carter

    Bitcoin is the most profitable investment online of only you trade with the help of a professional expert

  30. Adam

    I’d rather buy the market at 19% interest rates following higher interest rates for longer than buy following zirp infinity for 20 years. Normalization in this case is a super bearish argument, it’s not “this isn’t that bad”

  31. Cary Carter

    The literal GOAT of money, not a small thing. I'm even more of an excited teenage girl than u are

  32. Susan Nico

    Investment in stocks is a great way to invest your money. The team is constantly checking the market for changes and make sure that you are always informed about the best time to invest. As a result, I have made more money than ever before, and I don't have to manage my portfolio on my own! Invest in stocks, it's worth it!

  33. Lucinda Bellick

    I used to think every investor lose out during recession, meanwhile some make millions. I also thought everybody went out of business during the great depression, but some went into business. Bottom line, there's always depression for some, and profits for others. it all starts with having the right mindset. That said, I've set aside $265k for future, unfortunately I'm a complete noob.

  34. RADIUM CLOCK

    If you had more High School teachers like this man, you would eventually have more fiscally responsible young adults.

  35. Jeremy Ezell

    "Interet Rate" 😉

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