 Good day, fellow investors. As we all know, a rising tide lifts all boats. And this is what we have been enjoying in the last eight years. All stocks, practically all stock markets have increased. Nevertheless, the tide has slowly started to shift. The Fed is raising interest rates. The Fed is not buying treasuries anymore. They are selling them now. They are lowering the amount of monetary easing that has been the case for the last eight years. Europe plans to do the same. We'll see how that goes on. Nevertheless, the tide as always might shift. The economy might hit a plateau and then go into a normal healthy recession. If that happens, companies, good companies will do well, will weather it and be even better later. But when the tide shifts, we'll see who swims naked. And that's very interesting. And that gives a hedging opportunity. That gives something too short. Buying long-term dated put options gives you the opportunity for cheap money to really buy into a company, to really protect yourself by owning a put option in a company that will go bankrupt, that will lose 100% of its value. And that will happen. Mark my words with a lot of companies because a lot of companies are swimming naked thanks to the rising tide. Let's see the high yield for the US. It is at historical lows. But it usually jumps at the first sign of trouble. We can see that it went to 22.5% the interest rate, average interest rate on junk bonds. In 2016, where there was turmoil, lower oil prices, it quickly went to 10%. Now it's again close to 5%. If we look at Europe, the junk bond yield is 2.63% which is extremely crazy and the market is completely distorted. But you can see that when there is turmoil, 2001, 2008, it goes quickly above 20% and sends a lot of companies into bankruptcy. Here we have the two yields combined. We can see that they often go above 20%, quickly raised above 10%, 15%. So what happens if the yield increases for companies? Their interest rates, yes, get higher, but the problem isn't so much in the interest payments. The problem is in new refinancing rounds. If you finance a junk bond in Europe with 3% now and then the interest rate rises to 12%, you're not going to refinance the company because you know you won't see your money back. And this pits up the process and sends the company into bankruptcy. A company that I discussed here I also unfortunately invested that had huge amounts of debt. I was greedy, I didn't know what to do with my money is Teva Pharmaceutical. They have a lot of debt. They just got a credit rating that forced them to fire people, to sell assets, to do restructuring, to do whatever in order to try to get financing and save their sales. The stock price fell from above 60 to 11 and now it's again higher at 18. However, we can see here what a change, just a small change in what happened, just a marginal change does to stock that has a lot of debt. Especially if the debt is close to junk territory. So this is something that we have to look for when hedging, when looking for hedges. Stocks that have a lot of debt, debt, everything seems right now, but just a small change in the sector or in interest rates will affect it very, very meaningfully or negatively. Now apart from higher interest rates, another shift in the tide can be in a form of a recession. And that's something that will hit a lot of companies that started in the last eight years, took advantage of cheap money, of high liquidity, of high equity rises in order to fuel growth that is not profitable. One company, it's a European company that's very interesting, is Basic Fit. Basic Fit, a fitness company that is opening up to new stores across France, Belgium, Netherlands. They increased revenue by 26%, but they don't mention here that they increased their number of stores, the number of fitness centers by 27%. So there is really no organic growth. Everything grows by acquisition, by increased shops. Secondly, the revenue is 248 million over the first nine months, and their profit is around 2 million. So while everything goes well, their profit is just 2 million. Let's say there is a recession, some people get fired, don't go to the gym, cancel it. Those 2 million could quickly turn into a negative 20-30 million. If we look at Basic Fit's stock price, you can see that it went up as soon as the company became profitable to very, very high levels since the IPO. Nevertheless, if the growth stops, if it turns into negative territory, there will be no profitability, a recession will happen, especially in Europe. This will be very, very difficult to manage, and I expect the company or to sell assets or to do whatever possible to just save itself. So finding such companies, if you can find options, is a great way to cheaply hedge yourself. Do you have any hedging ideas? Companies that are stretched, that we can buy, put options, please share it with us in the comments. Thank you for watching, looking forward to your comments, of course, and I'll see you in the next video.