Charlie Munger (former Chairman of The Daily Journal Corporation and Vice Chairman at Berkshire Hathaway) has predicted a recession based on the high inflation in 2022. But how do we invest in the resulting stock market crash? Is Warren Buffett style value investing the way to go? And what are Charlie’s tips to help us make money in during the recession?
New Money Clips:
My Podcast:
If you’d like to try Sharesight, please use my referral link to support the channel! 😀
(remember you get 4 months free if you sign up to an annual subscription!)
★ ★ PROFITFUL ★ ★
Learn to Invest with Brandon van der Kolk (BUNDLE OFFER) ►
Learn to Master Your Tax Return (SPECIAL OFFER) ►
★ ★ CONTENTS ★ ★
0:00 Charlie Munger Predicts Stock Market Trouble
0:30 The Latest Inflation Data
1:19 Jerome Powell Announces Interest Rate Hike
2:19 Charlie Munger’s Thoughts On Inflation
3:47 The Political Will To Act
5:12 The Fed’s Money Printing
6:20 How To Invest During a Recession
7:44 Buffett’s Rule Number 1
8:56 Don’t Be The Gambler
10:40 Charlie’s Thoughts On Stock Crashes
11:31 Value Investing Never Dies
DISCLAIMER:
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.
Contact email: aussiewealthcreation@gmail.com
Note: I do not have the ability to answer all emails, but know that each email is read. If enquiring about sponsorship, New Money is currently only seeking sponsorship from established brands that do not deal in a financial product (as per Australian Law)….(read more)
LEARN ABOUT: Investing During Inflation
REVEALED: Best Investment During Inflation
HOW TO INVEST IN GOLD: Gold IRA Investing
HOW TO INVEST IN SILVER: Silver IRA Investing
Love your smile!
After watching this video I made sure YouTube notified me every-time you post new video. Knowledge is power.
I'm not kidding when I say that the market crash and high inflation have me really stressed out and worried about retirement. I've been in the red for a while now and although people say these crisis has it perks, I'm losing my mind but I get it Investing is a long-term game, so I'll try to focus on the long run.
definitely did not cause Munger "a lot of agony" $$
Yea right, he wrong already, but if he say invest next year about summer then he has time the market well. Why? Unless they call it a recession governor need to balance state budget, can't borrow. That means no raise for it union teacher etc.and
Many get pay cuts. The the private sector follow. There not likely to call it a recession till next yr if they did, so that means another round of company pay cuts. We are doing the same as U.K. So rail, nurses unions are all threathing ti walk of in strike.
Watch Monday our rail worker will call in a strike. It's planed. Next nurses, teacher etc so it just more getting worst inflation as the fed only can print money. Only CD are making good money now.
Everyone has been preaching "buy now, stocks are at a discount" but I've been buying stocks at a discount since the beginning of the year and yet the cycle continues with more losses, I know the idea is to hold long term but God I could really give anything to see some growth happen to my portfolio.
We are currently in the jaws of the worst bear markets I have seen, the average stock has been cut in half, and the only way to make money this year has been to either short or to trade long in very short time frames. I'm still at a crossroads deciding if to liquidate my dipping $117k stock portfolio, what’s the best way to take advantage of this bear market?
The FED is . . is . . . clueless
Education and traveling are both beneficial when finance market is manipulated by the evil.
The stock market can be very tricky and risky especially during these tough times of inflation and recession. People who want to dwell in financial management need to understand how and where to allocate their finances in order to battle inflation in the stock market and still make valuable profits.
Munger is a straight shooting, no BS legend.
Invest in manufacturing coming back to the USA because China is getting ready to collapse under all it's dark pool debt. And WHEN they collapse, ALL supply chains will be disrupted. The USA is PRIMED for doing for themselves again, WITH THE HELP OF MEXICO for cheap labor (they are now far cheaper than China, now). Tucson, El Paso, Houston, San Antonio, all primed to take advantage of their cheap land, cheap labor, availability of inputs to be our new manufacturing base a la Guangdong. Gang wars in Mexico are a 2nd ISIS on our doorstep that could hamper this.
Isn't the point of raising the interest rates so fast to induce a recession to cool off the economy and demand for goods? I find a lot of these people forecasting or even wishing for a recession to prove their negativity right, are ignoring the recent artificial recession caused by covid. At the peak, there was 20% unemployment, but in reality, the majority still had jobs and certainly public service workers are not affected at all. We saw encouragement of those who had jobs to keep spending in order to keep the economy going, and many people did just that.
I own VTSAX. I am pretty confident saying that it will continue to go down short term. And then it will rebound. I am not selling any positions. In fact, I am dumping as much money as I can into VTSAX for the rebound effect. Sometimes you just can't pick a 'winner' that is guaranteed to go up in a recession. It's more about minimizing risk and looking long term for the rebound gains.
Crisis lasted until Saudi Arabia increased oil output;… I hope we have a friend in Andromeda to increase the non-Earth oil output, (or fusion energy)…
A recession (if at all it happens) will likely make the US economy to crash. But for stockholders, a recession as bad it can be, provides good buying opportunities in the markets if you’re careful and it can also create volatility giving great short time buy and sell opportunities too. This is not financial advise but get buying, cash isn’t king at all in this time!
Great Video! But I made my first million through trading stocks and inves-ting as a beginner but assisted by an expert obviously; Elizabeth Ernst David. We met at a trading conference and I looked her up online thereafter. Bottom line, she agreed to guide me and I've had no cause to regret ever since.
The irony of a channel named "new money" showing clips of a dinosaur lmao
There are two requirements for success in Wall Street. One, you have to think correctly; and secondly, you have to think independently.
A recession (if at all it happens) will likely make the US economy to crash. But for stockholders, a recession as bad it can be, provides good buying opportunities in the markets if you’re careful and it can also create volatility giving great short time buy and sell opportunities too. This is not financial advise but get buying, cash isn’t king at all in this time!
Almost any change creates winners and losers.
For example, high interest rates punish borrowers but reward savers.
Thanks for the insightful video.
Buy a high quality corporate bond portfolio and chill.
The fact that this man is 98 and he's so coherent and accurate in its answers and understanding of questions and the financial world is fascinating. Imagine a world where our greatest minds live to 150 or 200 how useful would that be for humanity. How useful would it be to have Einstein live today or Edison, having 200 years of research behind them.
Best thing to do right now is buy diversified global index funds while they’re cheap and hold till the market recovers. Unless you really know your shit, you’re not going to beat that strategy.
A recession as bad it can be, provides good buying opportunities in the markets if you’re careful and it can also create volatility giving great short time buy and sell opportunities too. This is not financial advise but get buying, cash isn’t king at all in this time!
Misleading title -> down vote.
worst than Volker: A republican government
Munger is exactly correct on a large tax on short term gains in the market (or in anything for that matter like home flipping). Such disincentives are needed to reduce distortions in the market by speculators and manipulators.
"The Fed printed trillions and we have to deal with the consequences."
The economic implosion of a devastating pandemic would freak out the business class that owns the government.
The fact that things were as "good" as they were was a consequence of massive intervention.
Have to remember, the aim of business is to keep labor cheap and frightened and that means to ensure a large enough unemployed group to be able to scare workers with homelessness.
How much did tRump's tax cut add to the national debt? Follow up question and an observation. how much trickle down stimulus to the national economy has there been?
Observation, recent data has shown that between 50% – 60% of inflationary price rises have gone to suppliers profits, most markedly in highly monopolistic industries. Clearly these robber barons have exploited the supply chain issues to extract super-profits.
Tip #1: don't invest in Alibaba like munger did. -70% has got to hurt
I am 38 years old and want to build wealth through taking the time and effort to consistently invest $20,000 every month into the financial market because slow wealth is the best wealth. I think the reason why I want to do this is because financial freedom is necessary for change and I grew up with my mother( a single parent) having to raise two kids on her own with no help and I realize the stress of not having enough can cause you.
Hi! Bro, Which Camera You Use for Shoot Your Youtube Videos?
charlie saw his arse with alibaba. he sounds smart because the typical audience is sub par in intellect and experience.
The people that are thinking about how to invest during a recession are very likely the greedy assholes that caused the recession
How can we expect rational outputs when the Government is putting it's thumb on the scale, irrationally? Rate hikes from the Fed, while the Government spends more and more, while the current admin is purposely causing energy costs to increase in order to make inefficient energy sources to be more palatable…
Great content. I would, however, not want to claim that Volcker ended inflation. The combination of significantly lower fuel prices($140 -> $40), lower marginal and corporate tax rates did a whole lot more to do that. Fed rates are at best a sledgehammer that mostly distort the economy. If fed rates are set too high, they quash an economy (Volcker); if set too low (Greenspan) they create bubbles. There is no match for individual price discovery. The current FED is in a "poking" phase which reduce capital investment due to uncertainty.
Inflation and recession are two completely different things, and in fact, they are often polar opposites. The thumbnail and title of this video are contradicting each other.
Rich ppl create self fulfilling prophecies then look smart. They manipulate the stock!
I will just continue to buy VOO with dollar cost averaging
Its seems wise to have assets in things people need because no matter how bad things get people will always need water, energy, food and housing. If you dont have enough to buy those as an asset, then secure them for yourself. Land food energy water. Buy a small peace of property, couple hundred pounds of rice and beans with a solar panel and a hundred gallon water tank. If you can buy stock in companies that control those sectors. Do all of it. If your broke like me just buys a couple bags of rice and beans and get an apartment closer to work. Less time to work, less fuel and wear on your car. Switch your 401k to energy and ag companies like Exxon an ADM.
I believe that the inflation is already priced in market since the end of last year. These manipulative rates are always 2 steps ahead of everybody because they are market makers, I hope I’m wrong and they won’t keep dumping it on retail investors as always. Those who hold the longest will profit the most, I trade and hold profits
Is this the guy building a windowless dorm/prison at UCSB? Monstrosity.
A person in his 90's still have his mental health in sucha a great shape is astounding..
Biden has lost it in his 70's itself.
Munger is an inspiration to many around the world.
This is all planned, right? You know that, right? Voclker, etc, want USD to rule. Take money out of the system. But there is no trauma in this. So they won't do it. You get his, right?
B. U. X. B. E. dude.
Are you in Sydney? You sound Melbourne.
Wipe everything back to 0 and we start over, easy