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#32: Christopher Cole On Appreciating Risk

Superinvestors and the Art of Worldly Wisdom

CHAPTER

The Role of Defense in a Recession

Paul Tudor Jones: Most important rule of trading is to play great defense, not great offense. Value stocks outperform momentum stocks at the end of a growth cycle but will have drawdowns like everything else. With yields down at 1.5% right now, bonds are going to have to move to negative 3% to get the price appreciation that you got during the last crisis.

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