The Recession: One Secret That Should Make You More Optimistic
There’s hope.
All the gains we’ve made in stocks, crypto and other assets since the pandemic has vanished. We’re back to square one.
The whole thing has been unwound. Everyone’s portfolio from Warren Buffett to Joe Schmo down the street has taken a massive fucking haircut.
So, where do we go from here?
The answer is pretty simple: we keep going.
As the old saying goes, “He who holds cash during a recession is king.” If you have a steady income, you can buy assets on the cheap; you can have the entire restaurant to yourself while others prioritize bills. And if you don’t have a steady income, then you may have to liquidate your assets for the time being.
But that isn’t the good news. This is.
The Federal Reserve Only Has One Move to Make
They can’t let the economy fail. That’s it.
There is always a safety net underneath equities and the wider asset market because every financial institution is too big to fail. Every bank, hedge fund, and insurance company is too interconnected to let go.
Not only are these institutions invested in the market, but they are also overleveraged…
