Lore has it that Peter Thiel is a financial genius, or at least, would have access to information financial geniuses would be able to conjure. You are right that Max probably has little idea himself about the financial industry. However, his business associates do.

Ultimately, Max is advising to buy cash (raise capital) when it's cheap (bubble) so you can sell cash (spend capital) when it's expensive (recession). Your advice to "live frugally, save money, and make plans for rainy days" reduces to the same, though maybe with a less ambitious connotation.