August 23, 2020
Financial Collapse - Private equity could be going toxic
There are just over 3000 quoted companies now, compared to over 7000 in the late 90's. There are more private Equity companies than quoted companies. Investment professionals recommend that your portfolio should have exposure to private companies.
In this video I go over why you should be very careful about this strategy as the ratio of bankruptcies of PE companies is of a magnitude of 10 times that of listed companies.
So, you could be in the position of introducing risk into your portfolio through the back door.
Of worry is that there are 2.5 times the ETF's chasing 3,000 companies - this is a major potential risk going forward and one which I will be covering in a near to be released video.
Please remember that just because a market (the stock market) seems to be defying gravity and rising higher, it just means that it has further to fall when there is a triggering crisis or crises. We still remain bearish at Strategian but that doesn't mean that there aren't investment opportunities out there. You just have to know what can and is likely to happen and be prepared for events that unfold.