What To Buy When Recession Hits

Beauty is in the eye of the beholder, and it turns out the difference between a growth and value stock is too, with price as a key determinant.
Some of the darlings of last year and much of the prior decade have recently been rebalanced from growth to value by a major index provider. Such is the power of a bear market!
This week’s WEALTHTRACK guest is a well-known value manager known for her global and international investing. We’ll be joined by Sarah Ketterer, Chief Executive Officer of Causeway Capital Management. Ketterer will tell us why she believes we are entering a new investment era and discuss some of the “outstanding” investment opportunities being created in the process.
00:00 Hello
00:51 Introduction
02:50 Interview with Sarah Ketterer
23:24 One Investment
24:07 Action Point
WEALTHTRACK Episode 1902 broadcast on Jul 8, 2022
More Info: wealthtrack.com/top-global-va...
#stocks #recsssion #stockmarket #investing

[@58harwood]

As Jack Bogle liked to say “nobody knows nothing”! “Forget the needle, buy the haystack”!

[@gehadbisharat8133]

Wow...Sarah couldn't of said it better! Double WOW! I would only buy long when the FED stops tightening. Conseulo you have the best guest. I would pay for this financial education!

[@ioannislazaridis4887]

Absolutely Agree . I'm subscriber to 3 newsletters. Today's interview and all interviews presented by Consuelo Mack are more insightful and worth a paid subscription.

[@rupertpupkin27]

I love that Sarah speaks in a down-to-earth, and straightforward manner. She has an admirable (and essential) balance of humility & confidence

[@daveturner7958]

used to read what she had to say in Barron's Roundtable. first time seeing her being interviewed and came away very impressed. articulate, knowledgeable, and so easy to listen to. nice smile too :)

[@P37RU5]

It is always pleasant to hear Sarah Ketterer

[@jackominty3633]

Her #1 recommendation was Philips. That was in July 2022, when the price was around $20 to $21. By November it hit $12.64. Now, in Feb 2023 it's $15.84. It's a tough game, predicting the future.

[@44of]

Very useful perspective; thanks. However one comment deserves a consideration from a point of view that"s larger than maximizing ROA. About UniCredit Ms Ketterer says "we don't want to own companies engaged in what we call 'national service' where they're doing something that's good for the country but not for the shareholders." Ideally there would be a sufficient number of investors who could see social good as a benefit worth sacrificing a few basis points.

[@shawn576]

Sarah does accurately describe how frustrating it is to watch stupid meme stocks go up while companies with strong earnings remain flat year after year.

[@chessdad182]

Enjoyed listening to Sarah. I put a modest portion of my portfolio in money market to cover retirement until SS kicks in. I think Christine would have approved that. Then I can ignore the daily ups and downs in the market.

[@worldstreetfoodfun2221]

Sarah love ❤️ the way you think of future investment opportunities!

[@jc.1191]

Excellent interview. Although it looks like Enel is heavily into gas, and very well known unlike what she mentioned.

[@joesphcu8975]

The lower the market goes, the cheaper everything becomes. You just don't realize it until after the market inevitably recovers.

[@bobbymainz1160]

You just need a ton of cash to actually benefit from market crash hence having a savings account is essential.

[@oneiljerry9460]

Use this period to accumulate more shares

[@lawerencemiller9720]

@@oneiljerry9460 Working with a pundit to develop a well-structured investing portfolio is a wonderful approach to get started. That's why I've been working on my dealings because most investors enter equities and exit with a rapid 10% to 20% profit, I've learnt to be patient with stocks. They miss out on the massive gains since it trades at a P/E ratio of 40-50.

[@trankt54155]

But here is a problem, if inflation comes down and the economy and employment slow down drastically then there is no need for the Fed to further tighten monetary policy, and if the GDP heads south further and employment drops then the Fed may have to decrease over night market rate.....and this can happen on a dime.... That said, it would be a good idea to buy dividend stocks that pay decent dividend BUT also at the same time there is plenty of opportunity for capital appreciation as rate tightening loosens again... Remember, the average recession lasts about 1 year.....and we have been in recession by two negative GDP growth quarters already. Stay invested.....

[@kikolatulipe]

What to buy ? Rice, oil and coffee lol

[@dassa0069]

In the midst of the Fed combatting Inflation a deflation is brewing. The actions the Fed takes to combat it will lead directly to Hyperinflation.

[@peterlynch6744]

Come on too many commercials !!!

[@joannemeeks745]

If reports are true, China is going to have fierce agriculture shortages. Chines manufacturing is part of current de-globalization trends. I would definitely stay out of China. My portfolio is highly defensive now.

[@trankt54155]

Yes, Jack Bogle said, "No need for investing in foreign stocks; just buy index funds" That said, Vanguard High Dividend ETF (VYM) pays almost 3% in yield (2.89%). with cost of only .06%...and room for capital appreciation.

[@Mrmarginofsafety]

Philips may make you money but is not a good long term hold more cigar butt. They are poor capital allocators flatline growth numbers for many years, negative ROIC. Only returning 7% profit on 45% Gross margins. They need some Nelson Peltz love to cut out the fat.

[@trankt54155]

Financial stocks are in a much better position for dividend payout as rates go up and there is also room for capital appreciation as many of the banks are selling way below their book value and earnings.

[@michaelsimpson2103]

or oil

[@zztop8592]

If it sounds to good to be true, it probably is.

[@trankt54155]

Oil is very risky and high speculation.....just a few days ago it dropped down to $86 a barrel....it is a HIGHLY cyclical segment and is tough to stomach......investing in a sector is very risky......and long-term investment in petroleum is not there....

[@michaelsimpson2103]

Nobody uses oil right?

[@trankt54155]

@@michaelsimpson2103 About a year ago, oil FUTURES traded BELOW zero (minus)....meaning you wojld ahve to pay people to take your oil.....trading oil sector is extremely volatile and if you have the stomach, by all means, do it; but unless, you know about SECTOR investing and do not want to lose your RETIREMENT money, then stay away comrade..

[@michaelsimpson2103]

@@trankt54155 the price is volatile. The consumption rates are not

[@shawnshok9274]

terrible advice - stock price now 17.75.

[@frankdorr7198]

Iiiiiiiiiiiiii

[@brianhollenbeck8633]

If you don't know how to invest call Causeway, call Causeway...they make it easier you bet call Causeway, call Causeway..😇👑🌍🌏🌎💚🤙🌴🌴🌴🌴🌴🌴🤙🌴🌴