Thank you for always providing valuable information.
Does Buffett Taro think that after the next recession, stock prices (for example, SP500) will recover rapidly like after the coronavirus shock? Or do you think that low-altitude flights will continue to some extent?
If low-altitude flights continue, what kind of stocks are you planning to allocate your assets to? If you don't mind, it would be very helpful if you could answer. Thank you for your support.
バフェット太郎 : I think the next recession will be relatively mild, so I anticipate that the coronavirus shock will not be a “deep V shape,” but a “shallow U shape.”
In the US economy, the labor participation rate declined drastically after the COVID-19 pandemic, making it difficult for the unemployment rate to rise structurally, and household balance sheets have been maintained in a healthy state due to cash benefits etc. by the government.
Therefore, I anticipate that the next recession will be relatively shallow compared to that in the past, but if that is the case, I think the sector that first becomes popular after entering a recession is general consumer goods stocks, whose business performance is easily influenced by the economy.