Value After Hours S06 E36 Author Brendan Hughes on Markets in Chaos: A History of Market Crises

Bullish:

• $FLEXCAP - Companies with flexible capital structures and low fixed costs are better positioned to weather economic crises.

  • “I think that there could have been more of a focus on, to a to a greater degree, companies that have, little in in the way of capital, required to to run their businesses.”

    Brendan·2:05
• $DEFENSE - Defense stocks tend to perform well during periods of geopolitical tension and crises.

  • “For example, defense stocks did did very well during that period. You see defense stocks doing doing well now.”

    Brendan·25:01
• $TECH - Large US tech companies are viewed positively due to their innovation and strong earnings growth, potentially justifying their premium valuations.

  • “I still view the US as leading in innovation, and that's reflected in the the great, you know, mega caps that that that that we have. And, you know, we've done really well in cultivating this environment for our technology firms that has, you know, possibly justifiably allowed some of these companies to trade at at premium valuations.”

    Brendan·53:01

Bearish:

• $CRUISE - Cruise lines are vulnerable during crises due to their high fixed costs and inability to quickly cut expenses.

  • “Like, for an example, a company like a cruise line, they're not able to quickly cut their expenses like, a Microsoft would or or or or something like that. Like, they have a high proportion of their, expenses in in fixed costs.”

    Brendan·3:05