Use Common Sense and Avoid the Echo Chamber

On this week's Stansberry Investor Hour, Dan and Corey welcome Chris Irons to the show. Chris started writing about finance back in 2013 under the moniker Quoth the Raven and was a speaker at the 2019 Stansberry Conference. Chris kicks things off by addressing tariffs and shares how nominal prices will continue to rise regardless of what we do. He says the cycle of crashes and money-printing has continued to accelerate and create bigger distortions and drops. And he discusses passive bids that pile into the S&P 500 Index and cause valuations to become stretched. He warns against overexposure to the fund due to potential drawdowns in any of the "Magnificent Seven" that could take the index down with them. (0:00) Next, Chris states that the market has gone "all in" on options instead of equities, creating a state of leveraged gambling. And he predicts that things have changed so much that despite the beliefs that there will continue to be government bailouts or other solutions, this cannot continue. Something will break eventually. However, it's not all doom and gloom. Chris says you just have to find where there's good value. (24:06) Finally, Chris shares advice on how to hedge any large market crashes based on his own strategies. He also cautions against buying into assets in blind hope of reaching a bottom. If a company is burning money without generating any cash, there won't be a bottom to bounce off of. (42:19)