We kick off today’s episode by tackling what’s looming for most — is a recession inbound? With the yield curve rapidly flattening, the probability of an economic recession is higher than it’s been in years. I talk about the emergence of a rolling bear market and some market indicators pointing to a downturn. But if we do see a recession, it won’t be like 2008 — rather, it will be mundane and short. And remember that money is made in bear markets. Be aware and prepare.
So what’s the play right now? Growth stocks. They will continue to grow at lightning speed regardless of what happens with the broader economy. History repeats itself, and this time is no different: the best time to buy world-changing hypergrowth stocks is during times just like the one we’re in now.
And even before Google announced its acquisition of Mandiant (NASDAQ:MNDT), I’ve been all-in on cybersecurity. The stage is set for the industry’s hugely accelerated spending over the next decade. Bar none, cybersecurity is the most important in an enterprise’s technology stack — not to mention a government’s. It’s been lagging for a long time, and now the Russo-Ukrainian war has thrust cyberthreats front and center.
Speaking of the Eastern European conflict, we’ve seen it hasten the spike in oil prices. It’s been on a tear lately. But at the risk of striking any nerves, I’ve got something to say: the oil trade is for suckers. As more people turn to ridesharing technology and renewable energy, oil is facing incredible demand destruction. And I think this will end horribly for the archaic fossil fuel industry.
Crypto also saw a boom in the wake of the Russo-Ukrainian war, but it looks like they’ve quickly given up those gains. As I mentioned before, there’s a correlation between the crypto market and growth stocks. BTC (CCC:BTC-USD) may be digital gold one day, but it isn’t yet. The truth is ‘safe haven’ and ‘growth’ don’t mix. The strategy? Hunker down and wait.