We’re Now In A ‘Technical Recession’. What Will Happen Next? | David Hay

As we head into the heat of summer, the US economy finds itself in the doldrums.

GDP growth for the year has been negative both in Q1 and Q2 — which means we’re now officially in a “technical recession”

Inflation remains at a 41-year high. The financial markets continue to suffer one of their worst years so far in history. And now the housing and jobs markets are also cooling fast.

What can we expect from the second

half of the year?

For perspective, we turn to David Hay, co-founder & co-Chief Investment Officer of Evergreen Gavekal, a financial advisory firm managing $3.5 billion of investor capital.

As its steward, he can’t simply rely on an “opinion”; has to steer this capital safely through what’s coming next. So his conviction needs to be as high as possible.

Robert Kiyosaki: Worst Crash Of Our Lifetime Ahead, Here’s What The Wealthy Are Doing Says Rich Dad

Author of the best-selling book Rich Dad Poor Dad has some doubts as to whether the current Federal Reserve chair can reign in inflation.

As we wrote last week, the Federal Reserve and, more broadly, the Biden Administration are in quite the monetary bind. With inflation running above 8% and federal debt to GDP at 125% (surpassing the previous record in the 1940s), the only options seem to be: recession, default, or more inflation.

It’s not an enviable position to be in. As for which option they’ll choose, world renowned author and radio host Robert Kiyosaki has an idea.

Extrapolating from past precedent, Kiyosaki believes it won’t be long until money printing, aka Quantitative Easing, will continue once again. There is simply too much debt, both public and private, and the stock market is standing on stilts. Otherwise, the Fed would be facing “the biggest crash in world history”, an outcome they’re unlikely to stomach.

This makes the investment thesis pretty simple in Robert’s mind: own real assets. For Robert, “physical assets” take on many forms, from traditional investments like real estate and gold to more exotic ones like oil wells and Wagyu Beef breeding bulls.

Buying assets that the Fed cannot print is the core idea behind the thesis.

However, if Kiyosaki’s long-term thesis is correct, this is bad news for everyday Americans, who are already struggling with soaring gas and food prices. This is compounded with the fact that 89% of US stocks are owned by 10% of the population, meaning 90% may miss out on the asset price appreciation that often accompanies inflation.

Listen to Robert’s full interview to understand his thesis better and see how you might position your investments.

Sell Into This Week’s Strength? Probably A Good Idea | Lance Roberts & Adam Taggart

In this week’s Market Recap, Lance Roberts discusses the bounce this week in stocks and why investors would be wise to use it as a chance to sell and build cash. Lance estimates the bear market is still in play and that a firm bottom has likely not been reached yet.

He and Adam Taggart go on to discuss the odds for & timing of a policy pivot by the Federal Reserve, recession risk, bone-headed proposals

to contain gas price inflation — and then end with a discussion of the most important asset to invest in: your health.