Apr 18, 2022
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Leo Schmidt of River Eddy Capital Management rejoins the podcast
to discuss the coming credit crunch, its impact on stock market
sectors, and where to invest to protect one's portfolio.
- So-called "unicorn" companies, or the darlings of the VC crowd,
and others that cannot generate cashflow, will face a tough
- Undermining this is "a complete change of psychology" in terms
of velocity of money (6:27);
- What if the Fed reverses course? It's not so simple
- Oil is a short: "Oil is the ultimate liquid commodity" but
there is a place for pipeline stocks... (11:38);
- What stocks can thrive in this type of environment? Look first
to medical company spin-offs (19:13);
- Another area to look: Business development companies, or BDCs.
This is a risky part of the market but there is at least one BDC
making first-lien loans, which are the safest part of the capital
- Quick epilogue on China's latest Covid lockdown. There are ways
to play the move away from supply chain issues that result