Ups and downs are part of the economic cycles but People get greedy when prices of Stocks or Real Estate keep going up and that’s when they lose money.
Sometimes Recession is the only way to bring things back to Normal and I strongly believe that we are almost on the verge of recession. Is it possible to make good money during a recession, actually it’s the best time to make good money.
Let’s see what people do during a recession, so we know what to avoid.
- They take out their money from investment in the fear that things are going to get worse.
- They don’t invest during Recession and keep waiting till things go back to Normal.
- They keep waiting for Dip and end up missing the opportunities.
Why don’t people do the right thing?
It’s insecurity, a lot of people lose their jobs or their income goes down during recession, they are worried more about food and basic shelter instead of investing.
Real Estate
People thought it was the best time to invest in the previous 6-12 months but it was the worst time. They have overpaid at least 20-40%. I even noticed the difference in viewers of this channel, lot of guys were asking me more questions when Real Estate was going crazy but not as interested as prices were going down.
We are expecting to see over 20% drop in prices by next year, so we will see some good opportunities to invest. People with cash will be able to use this opportunity to make very good profits.
Stocks
It’s probably the best place to make money because you don’t need a lot of money to start.
In 2008, when we had one of the biggest crashes of this century, S&P dropped by 50% from a high of $1500 to around $750.
Did you know S&P dropped by 20% this year to $3800 from a high of $4800. Imagine investing in S&P starting 2008 and today, even after 20% you should have made crazy money.
After the 2008 crash, S&P grew by 20-30% for the next few years. Every recession does the same thing, stock prices go down and then they start going up gradually.
It’s difficult to find out when it will be at its lowest, so the best way to invest is to start putting money into an index fund either weekly or monthly and your money will find it’s lowest or highest points automatically.
Crypto
I didn’t invest in Crypto for a long time and it’s only a few months back when I started investing at the time people stopped talking about it and its prices started falling. Would you like to buy BITCOIN at $80,000 a coin or at $20,000. People were lining up when prices were going up around $80 k and now they are running away when prices keep on falling.
I have set up my own strategy of buying Crypto every 1st of month for $100-$200. It’s a small amount to start, but this is how you start.
Start small and buy consistently. I am buying it for 20-30 years from now and I am sure it will make some crazy money by buying at current low prices. More it falls, the more you need to keep buying.
I hope this investment strategy or mindset will put things in perspective for you.
