TCW's Rivelle: Credit-Fueled Expansion Will Not End Well

The video discusses the asset price cycle over the last 25 years, highlighting how the Fed's rate policies have led to increased asset prices without corresponding GDP growth. It emphasizes the importance of building defensive portfolios during the current cycle phase, identifying breakable and bendable assets. The US Aggregate Index's leverage trends are analyzed, noting increased corporate leverage without income growth, leading to potential market risks.

According to the speaker, what should investors be doing during the 20% of the cycle characterized by defensive strategies?

What does the speaker imply about the future of asset prices and the potential for a market decline?