'The Next Bankruptcy Wave Is Just Starting'

Episode #307 | April 24, 2023

Episode #307 | April 24, 2023

'The Next Bankruptcy Wave Is Just Starting'

In This Episode

In this week's Stansberry Investor Hour, Dan welcomes fellow Stansberry Research analyst Mike DiBiase to the show. Mike came to Stansberry in 2014 after spending nearly two decades in finance and accounting. He now serves as our bond-investment expert.

To kick the episode off, Dan and Corey discuss the latest home-sales data, how these numbers compare with the previous year's, and what this means for the economy going forward. Dan emphasizes that the housing market is a crucial indicator of a looming recession, and he questions the potential impact of inflation when the market collapses...

Yes, we're going to cry uncle at some point. And when the market [does], where will inflation be?

Mike then joins the conversation, and the three delve deeper into recessionary trends and post-pandemic inflation. Mike explains why the current inflationary period reminds him of a famous quote by economist Milton Friedman – "Money-printing is like alcoholism" – and that the bad effects have to come first to cure inflation.

Mike also points out that corporate earnings have fallen short of expectations for two consecutive quarters, and this may lead to further declines in earnings expectations. Additionally, he highlights the significant problems facing the commercial real estate sector and how these issues could be yet another signal of a coming recession.

The conversation then shifts toward credit cycles and the likelihood that we could be entering a period of credit tightening. Although credit cycles are normal, Mike says...

We're headed toward another credit-cycle event. We're going to see the credit bubble pop, and I think it's going to start this year.

However, Mike also suggests that investors can still make money during these tumultuous times. Tune in to hear exactly what he says and his advice for purchasing corporate bonds.