Here’s a friendly investing reminder: you don’t need the economy to go into a recession to lose a lot of money.
As Hedgeye CEO Keith McCullough explains in the clip above from The Macro Show, a corporate profit recession would be enough for (unprepared) investors to lose a large portion of their capital.
In fact, 30% of companies with a market cap over $10 billion have already reported negative earnings growth.
“Earnings and cashflows are crashing,” McCullough explains.
“Back in 2000, it did this too. Does anyone know what happened to stocks in ’00 through ’02? You didn’t need to have a recession to lose 60 to 70% of your money.”
Watch the full clip above for more.
