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Wealthion - Be Financially Resilient

Get Ready For 'Markets Gone Wild' | Darius Dale

Sep 26, 2023
Macro & markets analyst Darius Dale discusses stock market performance before a recession, potential market trends, investment strategies for stocks and bonds, predictions of instability, importance of risk management, intelligence and teamwork, financial advisor recommendations, and the services provided by 42 Macro.
52:17

Episode guests

Podcast summary created with Snipd AI

Quick takeaways

  • The stock market tends to perform well in the year leading up to a recession, with a median return of 16% for the S&P 500 during that period.
  • Proper risk management is crucial in a volatile market, and investors should consider Bitcoin and gold as attractive long-term assets while being aware of short-term volatility.

Deep dives

Stock market buoyant before recession hits

The stock market tends to experience high returns in the year leading up to a recession, with the median return of the S&P 500 being 16% during that period. More than half of that return occurs in the final three months before the recession. This suggests that the market performs well right before the economic downturn. Analysts predict that the stock market could continue to rise in the near term before a potential recession hits in the first half of 2024.

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