The speaker suggests caution in trying to pick a bottom in the post-pandemic market rally as it could lead to losing a lot of money. He recommends investing in real estate and other cashflow positive dividend-paying businesses, rather than focusing on equity price percentage gains.
The potential risks and opportunities of investing amidst the current coronavirus crisis are discussed, with a focus on managing investment strategies and avoiding losing money as markets fluctuate.
This podcast discusses an investment strategy that focuses on owning cashflow positive dividend-paying businesses such as Thermo Fisher, K-like 10 core applied materials, and others while avoiding energy due to overcrowding in the market.
The variable rate loans of the commercial real estate in San Francisco have increased to 11-14% coupons from 5-6% which could lead to many companies failing to meet their debt obligations and bankruptcy, resulting in banks owning most of the buildings. Office towers in San Francisco are currently experiencing a 27% vacancy rate and growing, making it some serious toxic debt.