“I know you’re not supposed to say this, but this is a unique opportunity. You won’t see that again: where you have a really good economy and the Fed pumping in trillions of dollars.”
That’s Mark Lasry, hedge fund manager and co-owner-billionaire Milwaukee Bucks, explaining his position on the investment landscape in a Wednesday chat on Yahoo Finance.
While stocks should be positive in the scenario he described, Lasry said debt investors like him are willing to lend to companies that are failing.
His firm, Avenue Capital, with $14 billion in the capital, has made money from such popular brands as Hertz, Macy’s, and JC Penney.
“You have a lot of companies that are in trouble,” Lasry explained, comparing what we’re seeing in the market now to what happened during the Great Recession. “It usually happens once in a lifetime, but it happened 10 years ago,” he added with a laugh.
Bankruptcies provide good buying opportunities for uneconomical sellers or people who just need to sell, Larry said in an interview with Barron’s last month. That’s where Avenue Capital comes in.
“If a company needs liquidation, that’s good, because I’ll make money on liquidation,” he said at the time.
Lasley suggests that the economy is in a better position to weather the storm caused by the coronavirus than it was in 2008.
“We all know something today,” he said. “We’ll be fine in two years. People will be back, there will be a vaccine. The question is, how long will it take for things to get back to normal, business as usual?”
Meanwhile, the stock market continues to hold up even during the general uncertainty. The Dow Jones index gained + 0.68%, the Nasdaq Composite gained + 1.43% and the S&P 500 added + 0.78% during Wednesday’s session.