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Founder of Rosenberg Research Dave Rosenberg thinks the pie-in-the-sky valuations and attitude towards the current broad market are naive, to say the least. David thinks a recession is all but inevitable and he lays out how he is allocating his capital to survive the crash and profit along the way.
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00:00 Introduction
01:49 Are We in a New Bull Market?
04:57 Where is David Allocating Capital?
12:27 What is Driving Debt Deliquency?
18:19 Excess Savings Are Running Out
25:37 Effect of Rate Hikes
33:25 Keep Some Dry Powder
34:34 Canadian Market and Commodities
38:13 Canadian Real Estate
41:17 How to Solve the Housing Crisis
45:22 Tailwinds for Gold
#recession #marketcrash #gold…(read more)
BREAKING: Recession News
LEARN MORE ABOUT: Bank Failures
REVEALED: Best Investment During Inflation
HOW TO INVEST IN GOLD: Gold IRA Investing
This is How I’m Positioning My Capital to Survive Coming Recession: David Rosenberg
With the economy facing increasing uncertainties and signs of a looming recession, it is essential for investors to adopt a cautious approach to protect their capital. One renowned economist and strategist, David Rosenberg, shares his insights on how he is positioning his own capital to weather the storm.
David Rosenberg, founder of Rosenberg Research and Associates and former chief economist at Merrill Lynch, has long been recognized for his accurate predictions about economic downturns. He successfully foresaw the 2008 financial crisis, which gives credibility to his expertise and strategy.
Rosenberg suggests that investors should adopt a defensive and risk-averse posture in a slowing global economy. He believes that being proactive is key to surviving a downturn. Here are a few key aspects of his investment strategy:
1. Diversification: According to Rosenberg, diversification is more critical than ever during a time of economic uncertainty. He recommends spreading investments across various asset classes, including stocks, bonds, real estate, and commodities. This approach helps minimize potential losses in case one sector or asset class underperforms.
2. Focus on Defensive Stocks: In anticipation of a recession, Rosenberg suggests focusing on defensive stocks that have a history of performing well during economic downturns. Industries such as healthcare, consumer staples, and utilities often fare better during recessionary periods. These companies tend to provide essential products and services that people continue to require, regardless of the economic climate.
3. Fixed Income: Rosenberg emphasizes the importance of fixed income investments, such as high-quality bonds, to provide stability amidst economic turbulence. Government bonds, treasury bills, and investment-grade corporate bonds can act as a safe haven during recessions. These investments provide regular interest payments and preserve capital, reducing the overall portfolio risk.
4. Cash Allocation: In uncertain times, holding cash is a prudent strategy. Having a significant portion of your portfolio in cash provides liquidity and the ability to jump on potential buying opportunities during market downturns. Cash acts as a cushion during a recession, and investors can use it to acquire undervalued assets when prices are low.
5. Alternative Investments: Rosenberg suggests considering alternative investments that are less correlated with traditional stock markets. Assets such as precious metals, commodities, or even real estate can offer diversification and potential upside, especially during tumultuous economic times.
6. Avoid Leverage and Risky Assets: In preparation for a recession, it is crucial to reduce or eliminate exposure to highly leveraged investments or speculative assets. These carry a higher risk during economic downturns, amplifying potential losses.
While Rosenberg’s strategies may not guarantee success during a recession, they offer a roadmap for investors seeking to protect their capital. By diversifying, focusing on defensive stocks, maintaining fixed-income investments, holding cash, exploring alternative options, and avoiding excessive risk, investors can position themselves to weather the storm.
It is important to note that each investor’s circumstances and goals are unique, and one strategy might not fit all. It is advisable to consult with a qualified financial advisor who can provide personalized guidance based on individual needs.
In conclusion, a recession may be just around the corner, and investors need to be prepared. Following the insights and strategies offered by experts such as David Rosenberg can help mitigate potential losses and position portfolios to survive and even thrive during challenging economic times.
Buy Bitcoin!
S&P looks like a healthy chart? This guy is an idiot
Hello David so what is the new definition of a recession ? When company's like Yellow go under and banks are also going under along with negative gdp and earnings etc etc how is it possible we are not in a recession? Why not just keep changing the definition to keep pumping the American Dream aka the 300 trillion+ debt economy ?
I’ve had majority of my holdings in tech stocks and irrespective of market changes, I’ve done pretty well especially with apple’s P/E(price to earnings ratio) gaining over 30% this past decade, now my questions is what stocks do you think will be the next apple in terms of growth for the next decade.
Ensuring the protection of your capital holds greater significance than solely focusing on making money. This is primarily because once your capital is lost, the process of generating profits becomes significantly more challenging. It is comparable to the notion of "missing the train" versus the irreversible consequence of "losing your money." While there are various opportunities available, once your funds are depleted, it becomes exceedingly difficult to recover.
Well, i do have my reservations about the economic crisis. Wall Street pitched so-called quality stocks with high profitability and low debt, as a kind of insurance against whatever the economy might throw at you. Quality stocks have underperformed the S&P500 this year, My $650K portfolio is down by approximately 20%, any recommendations to scale up my ROI before retirement will be highly appreciated.
He’s very smart and knowledgeable. But it doesn’t mean he’s right.
I’ve followed him for almost twenty years. In terms of stock markets, he’s usually too pessimistic. That’s not surprising because he has a bond background and most bond guys have difficulty really understanding stock markets and end up being overly pessimistic, while sounding very knowledgeable.
Also, he’s missing something here. He says markets have been rising because of FOMO and positive sentiment even though the fundamentals are actually weak.
That’s lazy thinking. It says “I’m right, even though I’m clearly wrong. It’s just that the market is not seeing that I’m right and it’s just sentiment driving things up.” If you have to fall back on “It’s FOMO, it’s sentiment” then you actually are wrong!
The reality is that there are sources of liquidity in the markets that are not being adequately taken into account. The most obvious is massive government spending of all types. Someone’s getting all that government cheese, and a lot of it is ending up in stocks one way or another.
So don’t just accept simple explanations like “Oh it’s just FOMO”. No, there’s something happening. You’re just not factoring it adequately in your analysis.
I don't think that immigration has anything to do with the real estate market……blackrock is continuing to gobble up housing (paying cash) then renting it back to us for double the price. Not blaming housing crisis on immigration.
Stocks set to decline in September
Get ready to pick up some deals
"The bond market is not buying into any economic message from the stock market and that's because there is no economic message from the stock market." Genius
My favorite finance channels besides this one:
Mondays: Earn your leisure market Mondays
Tuesdays: Wallstreet looks like us now network, Reppond Investments
Wednesday: Reppond investments
Also, melanin money podcast and peter Schiff show, Palisades gold, the RO Show wealthion, Joseph Carlson
For crypto: Ivan on tech, crypto banter, cryptosrus
Make my week complete!
Great interview
Canada is a low quality, high cost , no infrastructure, no food 5th world dump. Not even 3rd world is as bad as Canada today. Don't invest a penny here. Look at how good life is in Europe to see everything Canada has done wrong. Also they need better weather. Why spend any days of your short life in such depressing geography?
Truly excellent interview in these times of excess!
This guy is a heavy hitter
nice video jay, 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 of the upcoming recession and inflation is persistently above the Federal Reserve's 2% target. i would also need advice on what investments to make to profit from such economic crisis.
The video taught me something new. During a severe recession, it can be smart to buy things in the markets if you're careful. The recession can also cause prices to change quickly, which can be a chance to buy and sell things for a short time. Remember, this isn't financial advice, but it's a time when having cash might not be the best choice.
gold, LTL, japan
Canadian market? As long as Trudeau is in charge – no thanks.
Not just Covid response but also the response to the GFC.
The coming recession? Well that’s an inaccurate statement if we ever heard one. Either you are late to the game or you aren’t paying attention. 90% of people know we are and have been in a neck deep recession.
When David saying cash, what he means? GIC, short terms like 1y bonds, treasuries?
Great show Jay please have David back when markets turn back up. Thanku
It wasn’t the “stimulus” that Americans paid themselves (because taxpayers will end up paying for the checks sent to individuals AND businesses), it’s the lie, it’s the con that people are responding to. They are dropping out of a system (letting it rot), as citizens are beginning to see the corruption to its core. Americans would rather travel the country in a van with a dog than work for corporate America. What does one expect when Wall Street gets bailed out every few years while pensions are raided by companies that claimed to care, even as they ship jobs overseas. It’s the collapse of American confidence, and once lost there is no getting it back – at least not for generations.
David talks about stimulus like it was really that much. It wasn't for the lower classes anyway. He also talks about yolo and fomo like people shouldn't act this way when the federal government is literally trying to kill them with bioweapons. The world is upside down right now, run by pedophiles and criminals with no accountability who are getting disgustingly rich on the backs of the working class while the working class are pinching pennies to get by. This is part of the reason why people and markets are acting the way they are IMO.
Rosie is wrong about long bonds. Unless it is a short term trade avoid long duration bonds. Second wave of inflation will kill bond holders. Debt and deficits not getting better anytime soon.
Every bank crash or collapse offers an equal market opportunity if you are well prepared and knowledgeable. I've seen people accumulate up to $800,000 during crises and even pull it off with ease in a bad economy. Without a doubt, the bubble or crash has made someone extremely wealthy.
Screw you and screw your news letter we wanted to hear from David.
We HAVE made it to the other side of ‘helicopter money.’
The most anticipated recession that never happens
God help us all from the storm that’s coming!! Market is manipulated by the 1%’s!
data say soft landing
Come on bra, we dont need to hear about your newsletter and you mind twice a video, pick the start or in the middle and drop the other
Haven't you heard? Ressession was cancelled.
In this environment not losing money is winning.
Have listened to David numerous times. Really knows his stuff. Great u have him on your show!
Experts have been saying there will be an imminent recession for the last 3 years.