Interview with Econ Americas "David Skarica's Formula for Profiting from Pessimism"

David shares insights from his latest book, Mega Returns: Profit from Maximum Pessimism.

According to Skarica, assets surrounded by temporary negative sentiment often present good long-term opportunities. For instance, he purchased his house in 2011, “when no one wanted to buy a house after the housing bubble,” securing it at a low price. Skarica's book covers many asset classes and also emphasizes the importance of investing in gold as a reliable store of value, especially in these uncertain times. He also explains how to target corporate bonds with put options as effective tools for managing financial risk.

When it comes to crypto, Skarica compares bitcoin to gold in terms of its function as a hedge—particularly in struggling economies. However, he cautions that bitcoin has in recent times mirrored the Nasdaq's performance. That trend could undermine its role as a safe haven. Regarding altcoins, he considers them high risk and largely unproductive as investment vehicles.