Tony Kynaston - Situation Normal
I generally don't do episodes around current investing but many people are "...tense and nervous and can't relax" like the old Talking Heads song. Markets are gyrating wildly. There's a major pandemic spreading rapidly and economic activity is being severely constrained. People are asking should I sell or should I buy? When are things going to get better and is there going to be a recession?
Tony Kynaston kindly dropped into the garden studio to talk about his style of investing and how he sleeps soundly at night. You can hear his previous episode here. Tony is a professional investor who has been successfully outperforming the market for over 20 years.
The GFC was my university in share investing
He points out that times like these occur once every 6 or 7 years. There was even a major drop in share prices at the end of 2018. It's situation normal.
This episode was recorded at 10am on Wednesday March 11. On Monday the ASX200 (the top 200 shares on the Australian stock exchange) dropped 7.33% That was after it had dropped about 13% in the previous 2 weeks. The moves on the S&P 500, the top 500 stocks on the NYSE have been similar. Yesterday the ASX200 closed up about 3% after opening 3.8% lower.
It's a roller coaster, yet Tony remains sanguine.
He believes that we need to continue to enjoy our lives, keep a sense of humour and use this as an opportunity to learn more about investing.
What's a recession really like?
We talk about recessions and we're both old enough to have lived through several. Personally, I started a business during Australia's last recession 28 years ago. I lost my biggest client just as the doors opened. And yet, I survived and thrived.
I understand that people are hurt during recessions. There are lay-offs and financial struggles, we don't want to be flippant about this. However, people survive and in the end things eventually get better.
Why is the drop in the oil price
bad for markets?
We've heard all about the Corona Virus, but there's also problems with oil markets. It's a double whammy. Rob Gilmour was our guest on our very first episode. He dropped in earlier and gave his views on the oil situation and they can be heard at the end of the episode.
And finally we mention Warren Buffett and his interview on CNBC. Enjoy 2 hours of investing wisdom and fun.
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