(WCTW) It's Time To Play Defense
Over the past few weeks, I have become increasingly more paranoid about the prospects of an impending recession in the US. For energy investors and oil watchers, navigating the next downturn will decide convincingly how you will perform in the years ahead.
In this piece, I will go into details:
The data that's convincing me that we are headed for a recession.
What does that mean for the oil market (in terms of supply & demand balances)?
What you should do with your portfolio to position for an event like this?
And the incoming roadmap that I see that leads us to that potential path.
The Data
In our WCTW report last week titled, "It's so f***ing beautiful (part 2)." We said:
The market is always right to a certain degree. The extreme pessimism we are seeing toward energy stocks is partially warranted as the fear of a recession looms ahead. But there's always a catalyst, and in this case, we think a spike in oil could jolt us into a recession.
We think for the uneducated segments of the market, the price spike could lure many investors into energy stocks just as the economy is set to weaken. Informed readers need to abuse this advantage and increase cash if it happens.