Rule #1 Finance Blog

With Investor Phil Town

InvestED: Ep. 199- Recession Prepping?

“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 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.

If you want to learn more about how to prep for recession, join us on the podcast today!

Books to Read From This Episode

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On the InvestED podcast, Phil and his daughter Danielle shine a light on the successful investing strategies that gurus like Warren Buffett have used for 80 years. Listen in for a great stock market education on basics, learn how to invest on your own, and follow along with real-time examples and investing tips from week to week.