Expect Corporate Bankruptcies and a Recession This Year

Stansberry Investor Hour

Stansberry Research

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4.4 • 677 Ratings

🗓️ 7 April 2025

⏱️ 67 minutes

🔗️ Recording | iTunes | RSS

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Summary

On this week's Stansberry Investor Hour, Dan and Corey welcome their colleague Mike DiBiase back to the show. Mike is the editor of Stansberry's Credit Opportunities and senior analyst for Stansberry's Investment Advisory.

Mike kicks off the episode by discussing the rampant fear in the stock market today. He notes that this fear is not yet reflected in the credit market, which is a "mistake," as credit investors should be more concerned. Mike then talks about the lack of good high-yield bonds out there, corporate bankruptcies being on the rise, the worrying number of zombie companies, the Starbucks recession indicator, consumer confidence hitting a 12-year low, and why he believes things are "not going to end well" for the economy. (1:40)

Next, Mike examines the budget-deficit problem and the market's expectation that the government will always bail it out. He highlights the fact that the U.S. has been printing money at an above-average rate the past year and says he believes inflation will spike once more as a result. All of this is part of the "new world" that investors will need to learn to navigate, including permanently higher interest rates, bonds being a better choice than stocks, and an inevitable credit crisis similar to the one from 2008. (21:32)

Finally, Mike explains the economic difference between tariffs and inflation, how investors can "make a killing" from what's about to happen, and the many advantages corporate bonds have over stocks – such as it being easier to spot a bottom with bonds. He says he's waiting until credit spreads surpass 1,000 basis points, and then he will deploy his strategy of finding the best bonds out there with the lowest risk of defaulting. (40:22)

Transcript

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0:00.0	Hello and welcome to the Stansberry Investor Hour. I'm Dan Ferris. I'm the editor of Extreme Value
0:05.7	and the Ferris Report, both published by Stansberry Research. And I'm Corey McLaughlin, editor of
0:10.8	the Stansberry Daily Digest. Today we talk with our colleague Mike DeBias, editor of Stansberry's
0:16.7	credit opportunities. Mike is our longtime friend and colleague here. We value his opinions greatly,
0:23.4	and this is a perfect time to check in with him. So let's talk with Mike DeVios. Let's do it right now.
0:31.0	For the last 25 years, Dan Ferris has predicted nearly every financial and political crisis in America, including the collapse of Lehman Brothers in 2008 and the peak of the NASDAQ in 2021.
0:51.5	Now he has a new major announcement about a crisis that could soon threaten the U.S.
0:55.8	economy and can soon bankrupt millions of citizens. As he puts it, there is something happening
1:01.3	in this country, something much bigger than you may yet realize, and millions are about to be
1:05.8	blindsided unless they take the right steps now. Find out what's coming and how to protect your portfolio by going
1:12.2	to www. www. American Darkday.com and sign up for this free report. The last time the U.S. economy
1:19.4	looked like this, stocks didn't move for 16 years, and many investors lost 80% of their wealth.
1:25.9	Learn the steps you can take right away to protect and potentially
1:28.7	grow your holdings many times over at www.mican darkday.com. Mike, welcome back to the show. Nice to see you,
1:43.2	as always. Nice to see you guys. Thank you for inviting me.
1:46.0	You bet. I think, like, we need to have you on these days because it's turbulent times. There's a lot of uncertainty. Nobody knows how the federal government's, you know, spate of new policies, which seem to change every day,
2:02.6	will ultimately work out.
2:04.6	You know, are tariffs real? Are they a bargaining chip? Are we going to go through? Is it?
2:09.6	You know, that's just, and that's just one sort of issue.
2:13.6	And then, you know, the fact that the market has soared and soared and it's been
2:19.7	at its most expensive valuations by some measures ever and by all of them, you know,
2:26.2	one of the top two or three most expensive moments in history. And so there's that, you know,
	...

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