Will this recession be the financial crisis again?


Welcome to our weekly podcast – Investment in hypergrowth – where Aaron Davis and I discuss everything from electric vehicles and augmented reality to cryptos and the metaverse. In this week’s episodewe start with a Fiery sale! Specifically, how Big Tech stocks are valued for a looming recession.

But does that mean you have to buy the two-handed dip? After all, companies like Amazon (NASDAQ:AMZN) and netflix (NASDAQ:NFLX) take the wrestling bus for a reason. Despite this, I still keep my Netflix subscription. Are you?

Shifting gears, we discuss the housing market – and compared to the previous housing bubble and subsequent crash, is there really anything in common between now and 2007-08?

Now demand is falling in a way that matches what we saw before the subprime mortgage crisis between 2007 and 2010. But the supply of the housing market equation is about three to four times lower than what it should be to get a result. like 2008. We have far fewer homes on the market today – and a long way to go until home prices stabilize and then decline.

With this setup, we will likely get a return to pre-COVID housing conditions – which means a balance, not a crash.

That said, the US economy is most likely heading into a recession. The question is, will it be a shallow recession or a deep recession?

When most hear the “R” word, they’re thinking back to 2008. But a normal recession isn’t like what we experienced back then. Instead, we are talking about a 2 to 3% increase in unemployment. Wage growth could slow down a bit but should remain positive. And stocks could fall another 10-15% – but nothing as catastrophic as what we saw during the 2008 financial crisis.

Believe it or not, a recession is actually a good thing. The economy and markets can withstand a downturn. What he can’t handle is stagflation – a decade of losses because we can’t get runaway inflation under control. To prevent this from happening, we must eradicate inflation as quickly as possible. And a recession is the quickest way to get there. This will erase the excesses from the market. And it’s ok prepare us for a new bull market and a long period of economic growth.

Catch it Full episode at Hypergrowth Investing on YouTube!


Comments are closed.