 97% of CFOs believe a recession is coming in 2020. Okay, so 88% of CFOs represented in the survey work at companies generating greater than a billion dollars in revenue. Corporate financial officers are forecasting an impeding economic downturn according to a new survey around 150 chief financial officers conducted by consulting firm Deloitte. In its CFO Signals reports covering the last quarter of 2019, Deloitte found that 97% of CFOs queried to believe there is an economic slowdown to recession. Well, this shouldn't come as a surprise to you. If you saw my last video of what the Fed is doing at QE, this just update came as of today on zero hedge. Fed injects $82 billion in liquidity as term repo is most over subscribed in one month. More free money, they can't reduce interest rates. And basically what does this lead to? This leads to a recession. So Ray Dalio talks about this. He talks about his, I'm not too sure if you guys ever saw this, micro and macro models for Ray Dalio. And pretty much it's a cyclic system that we have where the Fed repeats the same patterns, print, print money, but the problem is actually getting worse and worse today. But print, print money, interest rates can't go up. Next thing you know, it becomes inflation, things get tighter and down the curve we go. Yeah, so this is Ray Dalio's probability of US recession in the next 12 months. And so his probability, he puts it at roughly 40% odds for recession, not quite as high as those CFOs, but honestly, I don't give a fuck what some billion dollar CFOs telling me to be honest with you, they live their own bubble. However, the things that you need to know is the Fed is printing more and more money, more and more QE is going on, more and more interest rates are being suppressed. In fact, like I mentioned before, they're putting in systems, Europe has this. So we're not as bad as Europe, but Europe has this and they're talking about this in North America as well is negative interest rates or negative yields, meaning the bank takes money away from you for you keeping money in the bank. So what happens when you can't get yield? At the end of the day, how economy grows is by yield. If investors cannot put their cash to get proper yield, let's say from the SMP or some form of government bond yields, they don't put that money within the economy. It's called capital flight. They'll take that money and lock it up somewhere else or keep it as dry powder for other opportunities. And so basically, if we're looking at Ray Dalio's chart over here, we're in for the next recession. And this happens roughly every 10 to 20 years is a cyclical cycle of recession. And so we can look at this over here. So where are we in the cycle? Each debt crisis has its own unique characteristics, but they generally follow this sequence, which raises a question, which where are we right now? Dalio thinks we're in the late stages and points to interest rates as evidence. Twice in the century, the U.S. went through debt crisis so severe that the Fed had to drop rates to zero and resort to unconventional policies like quantitative easing. For the first time since 1930s and again in 2008, in both cases, it worked in the sense that asset prices were covered, but it also had adverse side effects, unintended side effects. The higher asset price benefited the asset owners and most people aren't asset owners. The result is a wealth gap between rich and poor. In these periods, it grew too obvious to deny. A small part of society prospers as its assets gain value while the majority struggles. It happened in the Great Depression and we saw it again in the post-great recession years that a driven Dalio quantifies it in this chart over here, as you can see. And so where do we go from here? A recession is imminent. It looks like it's going to get worse and worse, but the reality is, this is the reality. I don't have it here, but the reality is this. During recession, depending on who you are, you have the best opportunity to benefit. And, you know, this article said something interesting over here. It talked about asset owners and it paints a picture as an asset owners are bad, which I don't like that. It's a bad connotation. I think the worst thing that people have in their psyche is they believe it's the haves or haves not. In reality, when you really understand the system and you get educated, you want to be a fucking owner. You want to be an operator. You want to have skin of the game, as Nasim Tlaib talks about. The whole idea of you working for somebody nine to five and even though you might be getting a good salary, you're not going to get fucking rich like that and you can't capitalize when recession happens. For asset owners doing recession that do have dry powder to have some form of liquidity or can get liquidity, it's a fucking goldmine from them. They can come in and get cheap stocks. They can come in and literally buy companies that might go into full closure or bankruptcy. For them, it's a goldmine. They'll just go around buying everything for pennies on the dollar, but it's also a massive opportunity for entrepreneurs out there that want to have, let's say, a head start from somebody because if you can prove a proper business model during the recession that has a good product market fit, that you have good margins and you don't have to scale it like this VC stuff. I'm just talking about really good margins and people are buying it. You're fucking laughing. If you can pull that off in the recession by raising a little bit of capital, getting really, really good product market fit and selling your product for good margins, dude, dude, dude, when the recession turns and it always fucking turns, like look at this, like the recession cycle. I know how many times people paint a bleak fucking picture. This is pretty much a recession cycle. It happens all the fucking time. All the time. You can even pull it up. Look, S&P. We'll even do, what is this? Fucking computer's free. We can do the S&P right here. We can do S&P recession cycle. Boom, here we go. It's not really a recession cycle. It's the biggest bull market of all time. .com, a little recession over here. Come back up. That's 2008 here. A little recession again. We're coming back up. It's cyclical. Every 10 to 20 years is a cyclical cycle. Here's a better chart. Here's S&P. That's the fucking biggest bull market ever. But what I want to tell you guys is don't be sucked into fear mongering because recession's happening. I'm a firm believer in when people, they're saying there's blood on the streets is the best time to buy, but I'm a firm believer when everybody is in fear mode, when everybody is in a scarcity mode, that's when you need to fucking strike. Strike when the iron's hot. This is where you can come in and get cheap talent. Man, when people are in fear mode, easy to get cheap talent. You can negotiate for fucking rent, which I don't recommend for startups at the beginning. Just work from your home or work from Starbucks. And there's so much opportunities during the recession. And there's a lot of businesses that are recession proof as well. Like if you look at Mazelhiker needs like food and shelter, etc. But yeah, there you go. They're calling in for the next recession in 2020. Ray Dalio agrees up to 40%, not 97 as the CFOs are talking about. But the moral of the story is it's a fucking opportunity. And I'll leave it at that. Peace.