New York Times’ bestselling author Larry McDonald, founder of The Bear Traps Report, returns to The Julia La Roche Show for episode 310. McDonald warns that a credit crisis has officially started with 16+ "idiosyncratic" events spreading tentacles across markets, while a big disruption is coming in Q1 as $6-8 trillion may leave the NASDAQ 100. But this creates an incredible opportunity for the cheap part of the market as the great rotation from growth to value begins, with coal and natural gas companies offering 15% free cash flow yields while tech giants burn cash in an AI arms race that's destroying their balance sheets. The market has internally crashed with the average S&P stock down 30-40%, but a handful of names are masking the carnage—and Larry reveals where the smart money is rotating.
This episode is brought to you by VanEck.
Learn more about the VanEck Rare Earth and Strategic Metals ETF: http://vaneck.com/REMXJulia
Links:
How To Listen When Markets Speak: https://www.amazon.com/Listen-When-Markets-Speak-Opportunities-ebook/dp/B0C4DFVFNR
Colossal Failure of Common Sense: https://www.amazon.com/Colossal-Failure-Common-Sense-Collapse/dp/B002IFLWMK
Twitter/X: https://twitter.com/Convertbond
Bear Traps Report: https://www.thebeartrapsreport.com/
0:00 Intro: Welcome back Larry McDonald, founder of The Bear Traps Report & author of "How to Listen When Markets Speak"
1:30 Credit bulls turning bearish
3:50 Credit most times leads equities
7:12 When does 'idiosyncratic' become systemic?
9:32 Opportunities for great stock buys
13:30 Nvidia
15:03 Dark side of passive investing
20:40 Set up for an incredible rotation from growth to value
22:00 Update on the hard asset thesis, commodity bull market
23:20 AI power trade
26:45 Banks buying Credit Default Swaps
29:20 A credit crisis has started
32:00 Parting thoughts
