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Highlights:
Wolf Richter, founder of WolfStreet.com returns to the show with cautionary comments on the US financial sector.Unlike many Wall Street bears, Wolf Richter does not expect the markets to implode, but instead, following a decade of record growth, stocks / bonds could under perform expectations.Although our guest does not view himself as a 'Gold-Bug' per se, he does note the positive portfolio-balancing qualities of gold / silver / shares.The discussion includes a recent article he penned on the housing sector, which reviews key US cities that have eclipsed their former 2006 housing bubble peaks.While real estate is a local market where many regions / towns remain fairly valued, on the contrary Wolf Richter finds key major cities with SFH prices at potentially frothy levels.Our guest reports encounters with the ominous mantra, "Housing can only go up in price," suggesting from a contrarian perspective, the US SFH market may be ripe for a price correction. Quicken Loans is now the leading US mortgage lender, specializing in infamous sub-prime mortgages via bond issuance's.Given that the company is unbacked by traditional agencies, without a "Fed put" to protect against exposure, the situation may represent a loose cornerstone in the foundation.Key takeaway - capital preservation should be the top priority - bank CDs / Treasury-Bills offer a small yield and may help shield investors from unwanted volatility in the financial markets while the PMs improve investment portfolio beta balance.Click Here to Listen to the Interview
Wolf Richter is the founder of Wolf Street Corp and the publisher of WolfStreet.com. Wolf has over twenty years of C-level operations experience, including turnarounds and a VC-funded startup. He has a BA, MA, and MBA (UT at Austin). In his prior life, he worked in Texas and Oklahoma, including a decade as General Manager and COO of a large Ford dealership and its subsidiaries.