Wed, 29 July 2020
Hugh Hendry joins Jason Hartman to share what was going through his head through the 2008 recession and what preliminary actions he took to position himself well. Everyone is wondering “where are we going [market]” and Hendry shares some thoughts based on actions the Fed took over the last 60 years.
Hugh discusses the early signs of chaos that awaits us as we move away from an accepted form of order. It’s not always a perfect situation for investing, especially if you only have one mindset for profit. Chaotic times call for positioning yourself to profit from a different angle.
[2:00] 31.2% positive return back in the 2008 recession
[3:00] To be curious you have to misbehave first.
[6:30] Discussing the “boom-market in fear.”
[12:00] Everybody is wondering where we are going [market]?
[28:00] What is your stance on Paul Volcker?
[21:30] What is the FED doing wrong?
[22:00] Looking for predictions in gold, the dollar, etc.
[29:30] We are conditioned by the very slow passage of time.
[30:00] Gold has been trending.
[32:45] 50 years ago we were pivoting from chaos to order. Today, we are pivoting from an accepted order to chaos.
[34:18] We live in a world where instead of reducing the money supply, they are desperate to increase the money supply.
[38:15] In preparation, think of the most chaotic events becoming normalized, and how you can profit from chaos instead of order.
[39:30] At the bottom of a deleveraging cycle, everything is cheap.
[41:30] “May you live in interesting times,” -the quote is back.