The investing opportunity of a lifetime awaits us when the recession arrives

While some countries are more indebted than others, few are in good shape. The entire world is roughly 225% leveraged to its economic output. Emerging markets are a bit less and advanced economies a little more.

Zombie companies While it’s easy to point fingers at profligate consumers, households largely spent the last decade reducing their debt. The bigger expansion has been in government and business. Let’s zoom in on corporate debt. The U.S. investment-grade bond universe is considerably more leveraged than it was ahead of the last recession:

All these are just one downgrade away from being high-yield “junk bonds.” The best data I can find shows that there are roughly $3 trillion worth of BBB bonds and another roughly $1 trillion worth of lower-rated bonds that would still be called “high-yield.” If it happens like last time, the ratings agencies will wait until their fate is already sealed before they cut ratings on these zombies. But that’s only part of the problem.

But there’s a problem. We talked about that $3 trillion worth of BBB bonds. Any that are downgraded by merely one grade will no longer qualify as “investment grade.” That means many pension funds, insurance funds and other regulated entities by law won’t be able to hold them. They have a very short time to sell them back into the market.

Once-in-a-lifetime opportunity I can understand the plight of retirees who are struggling to live on today’s meager yields. Those high-yield funds have been so good for so long, it’s easy to forget how disastrous a bear market can be. But it gets worse.

Simply buy SQQQ, if you think the market is going down.

Been waiting for that recession for years now ... missed out on about 50% advance

Only Jesse Livermore made money on a market collapse and we all know how badly it ended for him. I’d rather be a Buffet than a Livermore❗️😉

HarryLaneGroup Stop it! You are sounding like cnbc with all the 'Stinking Thinking' read my lips no Recession in 2020 and with the re-election of realDonaldTrump in November landslide a Bull Market will continue its record breaking run for the next 18 months without a hiccup

Yeah, keep holding your breath.

the best opportunity is to buy xrp right now.

JohnFMauldin There is a palpable risk of individual investors being sacrificed as classic microeconomic actors to a market determined by macroeconomic manipulation.

True Story. But you know what? If it's going down in steps or heaves, why not buy some puts now. Or even straddles. Why wait for something that could be 6-11 months out to start making money now?

JohnFMauldin Yeah buy now lol. No chance it crashes the next 15 months

JohnFMauldin There are no real signs of a recession. This is veiled fear marketing.

JohnFMauldin And with $22 Trillion and climbing TrumpDebt the chickens are flying in to roost sooner rather than later.

JohnFMauldin Someone’s misfortune is your buying opportunity. It’s true, just sounds unpleasant.

JohnFMauldin Try telling the story how IRAs tank big time with recessions. Democrats want poor people

United States Latest News, United States Headlines

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34% of economists in survey expect a US recession in 2021WASHINGTON (AP) — A number of U.S. business economists appear sufficiently concerned about the risks of some of President Donald Trump's economic policies that they expect a recession in the U.S.... Bummer. Trump will probably get re-elected if it’s not sooner and will destroy the economy with his insanity. Can you imagine if this shit show took office in 2008? We are already in recession. 2021 🤔 How is this a headline?
Source: AP - 🏆 728. / 51 Read more »

U.S. Commerce Secretary Ross downplays fears of recessionU.S. Commerce Secretary Wilbur Ross on Monday added to a chorus of presidential ... He was awake long enough to mumble that? Trump administration think they can fool the American people. Sad.
Source: Reuters - 🏆 2. / 97 Read more »

Caution is warranted but US 'should avoid a recession,' economists sayThe U.S. and global economy should avoid a recession in 2020, with a combination of strong retail sales, potential monetary policy easing and service sector robustness expected to mitigate slowing growth, according to several leading economists. Should ? The captain of the titanic said we should avoid the icebergs
Source: CNBC - 🏆 12. / 72 Read more »

More than 70% of economists think a US recession will strike by the end of 2021Stocks dropped sharply last week after a key recession signal flashed for the first time since before the global financial crisis in 2007. Much sooner. Yes, if dems win 2020 More like two thirds
Source: BusinessInsider - 🏆 729. / 51 Read more »

74% of economists in survey see US recession by end of 2021A strong majority, 74%, of U.S. business economists appear sufficiently concerned about the risks of some of President Donald Trump&39;s economic policies that they expect a recession in the U.S. by the end of 2021. The economists surveyed by the National Association for Business Economics, in a report So, I don't have a PhD in statistics, but this means 66% do not... isn't that really the story that the vast majority of respondents in the survey do NOT expect a recession? So if you read your article you list 74%. The accompanying video news story says 34%. SMH 26 thousand is not a recession. and the survey polled democrats. like they always do
Source: YahooNews - 🏆 380. / 59 Read more »

'I sure don't see a recession': Trump economic advisers dismiss indicators of looming financial troubleOn Sunday, Trump administration officials Larry Kudlow and Peter Navarro touted economic strengths and dismissed analysts' warnings that the U.S. could be facing another recession soon. Their words are so empty at this point. Pompous ness abounds. “I don’t see” is a phrase most thoughtful people have weeded from their spoken words.
Source: Newsweek - 🏆 468. / 52 Read more »