We Study Billionaires - The Investor’s Podcast Network TIP445: The Fall of Netflix and Overlooked Assets w/ David Stein
May 6, 2022
David Stein, a financial markets expert and contrarian investing strategist, dives into pressing issues affecting today's economy. He discusses the fall of Netflix and its implications for tech stocks. Current risks from supply chain disruptions and food shortages are covered, along with insights on China's Evergrande crisis. Stein highlights why shorting commodities might not be the best bet and emphasizes the potential of overlooked assets like closed-end funds and Business Development Companies for savvy investors.
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Food Shortage Risk
- A potential global food shortage is linked to the spike in fertilizer prices, impacting developing world farmers.
- Higher fertilizer costs deter planting due to increased risk, but rice prices have fallen due to a global surplus.
Contrarian Commodity Trade
- The most contrarian trade currently is shorting commodities, as many investors are already long on them due to inflation.
- Commodities were a better buy two years ago, and current prices already reflect bullish sentiment.
Evergrande Update
- Evergrande's situation has worsened, delaying financial statements and facing lawsuits from creditors.
- China's bigger issues include the virus spread and a declining birth rate impacting long-term growth.
