Dec 13, 2018
In a week of the debut of Elon Musk’s underground tunnel, a #MeToo outcry against “Baby, It’s Cold Outside,” and a British currency crash in the wake of a delayed Brexit vote in Parliament, there’s a lot for Dan Ferris and Buck to unpack this week.
Most significant for investors – and surely on a lot of minds – is JPMorgan’s warning that a 70% likelihood of a recession is looming. Dan explains why the projection is utterly irresponsible – and why, instead of predicting recession, value investors can prepare for one regardless.
Of course, even if a recession isn’t imminent, it always makes sense to hold onto a bit of cash – the question is how much.
That’s where Adam Schwartz, this week’s podcast guest, comes in.
Adam is the Chief Investment Officer at Black Bear Value Partners who has 16 years of buy-side investment experience in a variety of themes including equities, structured products, corporate credit and capital structure arbitrage. Prior to founding the Investment Manager, Adam served as a Director and senior member of the investment team at Fir Tree Partners, a $13BB peak-AUM multi-strategy investment manager.
His ”concentrated portfolio” strategy allows investors to focus only on their best ideas – and like Dan, he’s got his own portfolio composed to a surprising degree of cash.
And just like Porter, he’s been closely watching the corporate bond crisis that could be on the horizon. Whether it comes in JPMorgan’s predicted time frame or not, you’ll want to prepare.