The Coming Credit Crunch and Death of Unicorns: Leo Schmidt

This podcast episode was made available to premium subscribers without ads or announcements on Monday, April 11, 2022. Don't be jealous of premium subscribers -- become one by signing up here. Free trials are available. Leo Schmidt of River Eddy Capital Management rejoins the podcast to discuss the coming credit crunch, its impact on stock market sectors, and where to invest to protect one's portfolio. Content Highlights So-called "unicorn" companies, or the darlings of the VC crowd, and others that cannot generate cashflow, will face a tough reckoning (3:17); Undermining this is "a complete change of psychology" in terms of velocity of money (6:27); What if the Fed reverses course? It's not so simple (8:52); Oil is a short: "Oil is the ultimate liquid commodity" but there is a place for pipeline stocks... (11:38); What stocks can thrive in this type of environment? Look first to medical company spin-offs (19:13); Another area to look: Business development companies, or BDCs. This is a risky part of the market but there is at least one BDC making first-lien loans, which are the safest part of the capital structure... (26:23); Quick epilogue on China's latest Covid lockdown. There are ways to play the move away from supply chain issues that result (35:58);

Om Podcasten

The Contrarian Investor podcast gives voice to those who challenge a prevailing narrative in financial markets. Each episode features an interview with a hedge fund manager, investor, economist or other market participant. The goal is to educate all listeners with an interest in asset allocation and ultimately to provide actionable ideas to the institutional investor community.