This podcast episode discusses the duration of market retracements, comparing the current retracement to the dotcom bubble and the retracement that occurred in 1987.
David and the speaker make approximately 1% annually with 10 turns of leverage, but the banks earn much more when volatility spikes because of the increased interest rate on their loans.
Five major US corporations holding over a trillion dollars in cash could face forced repatriation and taxation by the US government, leading to financial pressure, missed interest payments, and defaults on debt. This could trigger a period of deleveraging and cause stresses and shocks across industries.