Where to invest in and where to stay away from in 2020? Shark Tank’s “Mr. Wonderful” has the answers.
“When you look at all markets each year, people make the assumption the S&P beats everybody else, it actually only beats the other markets 50% of the time over a 50 year period,” said Kevin O’Leary, chairman of O’Shares ETFs and Shark Tank star.
O’Leary added that everyone should own some emerging markets stocks and keep 5% of their portfolio in gold.
He doesn’t like bitcoin and U.S. treasuries.
“I wouldn’t touch that garbage,” O’Leary said of bitcoin.
On recession indicators, O’Leary said that he is less interested in the yield curve and more interested in what corporate debt is telling us.
“I get up pretty early in the morning and the first thing I do is check European and Asian credits to see if they’ve blown out. The first signal of real trouble is to see investment grade credit spreads blow out and they haven’t. So even though we have all these down days and the market’s got more volatility, the credits are very, very tight, which is telling you that at least for the next 18 months, in my view, it’s clear sailing going into the risk of an election,” he said.