The last thing an investor wants is to get caught completely off-guard when an economic downturn hits. That's why it's no fluke that some of the market's biggest names are positioning themselves to absorb a blow and keep ticking. One such example is Josh Friedman, the hedge fund titan who was among those that predicted the 2008 mortgage crisis. Business Insider spoke to the Canyon Partners co-CIO and co-chairman to get the scoop around why he's shorting the housing market — and his exact mechanics in doing so. Spoiler alert: it's a hedge. Then there's billionaire investing legend Stanley Druckenmiller, whose analysis of stock-market internals have led him to a discouraging conclusion: the next downturn is being signaled as we speak. But fear not — he has an idea for where you should be putting your money to insulate yourself. Beyond the recent punditry of top-tier investors, firms across Wall Street have also started to sound the alarm. That includes Morgan Stanley, which ran their own yield curve calculation and found that stock traders should be getting defensive as well. Here's a rundown of our other main coverage from last week, which featured interviews and recommendations from some of the market's top-rated stock pickers, as well as a reality check for fans of mega-cap tech firms. A duo of stock pickers crushing 96% of their peers unpack their tactics for finding companies that customers can't live without — and reveal their top picks The $211 million Brown Advisory Global Leaders Fund is in the 96th percentile of funds on a three-year basis. In a recent interview with Business Insider, Mick Dillon and Bertie Thomson — the fund's comanagers — unpacked why they placed a premium on companies that are loved by their customers and how they identified such firms. READ MORE HERE >> The Fed's recent behavior shows it's very nervous about the economy's future. Here are 3 reasons why you should be too. With the bond market practically begging for a rate cut, Jerome Powell and the Fed seem poised to oblige. But that's just part of the story. The recent messages being delivered by various Fed officers have taken on a noticeably dark tone, as if multiple forces are bothering them simultaneously. To that end, we assembled an easy guide outlining the pressures the central bank will face, even after the rate cut it looks to be signaling. READ MORE HERE >> Tech giants are in the crosshairs of regulators. Here's why one of America's biggest investors thinks the worst is yet to come. Mega-cap tech companies in the US including Facebook, Amazon, and Alphabet found themselves under pressure on Monday amid newly announced antitrust probes. Chris Ailman, the chief investment officer of the California State Teachers' Retirement System — the second-largest pension fund in the US, with $228 billion under management — explains why the worst is yet to come unless these firms take drastic steps. READ MORE HERE >> Other good stories from the investing realm: 'We're going to get rolled': Billionaire investor Stanley Druckenmiller breaks down why the US is headed for devastating losses to China in the trade and tech wars The world's biggest stock bear blasts a glaring investor mistake that could lead to years of losses — and explains why even the Fed will be powerless to stop a crash The bond market hasn't been this out of whack since the tech bubble. Here's why investors are going to 'extreme' lengths to make money. GOLDMAN SACHS: Buying the stocks loved by both hedge funds and mutual funds has produced supercharged returns. Here are the 12 that fit the bill. Investors are leaning on the Fed to keep the stock market's rally alive. Here's why they're in for a rude awakening. MORGAN STANLEY: An overlooked signal could determine the future of the stock market — and early indications suggest a tough road ahead |