How to Profit from a Recession: A Guide to Investing During an Economic Collapse.

[Music] would you see gathered outside the stock exchange are due to the greatest crash in the history good evening today is Black Monday the day the Dow dropped more than 500 points today the Dow dropped more than Dow tumbled more than 500 points sat down by bad mortgage investments Lehman which has 25 thousand employees will be liquidate it is definately recessions just that one word is enough to summon up images of graphs depicting downward trends alarming news headlines fear unemployment bankruptcy and it's all true during times of recession the stock market Falls house prices for

businesses go bankrupt people lose their jobs life savings are lost pensions that people have been putting money in since the start of their working careers vanish nobody is winning or are they if recessions were so bad why would someone like Warren Buffett who's the fourth richest man in the world to say he hopes to see a lot more recessions how did a company like Groupon which started jury the peak of the 2008 financial crisis spread to 300 markets and 35 countries within the space of two years meanwhile other businesses are collapsing why would Panera bread's

executive chairman and founder say the best time to grow is in a recession while some see recession as a time of turmoil it looks like others are seeing it as a golden opportunity and if you've ever wondered why that is or how you near you the one that's watching this video can profit from a recession then keep watching because I'm about to show you how recessions have created more millionaires than lottery winnings have and by the end of this video you'll know exactly how to take advantage of the next inevitable recession that comes our way

and here's a little tip the younger you are the more you're going to want to pay attention to this the health of a country's economy is usually measured by its GDP which stands for gross domestic product for simply the GDP measures the total value of all the goods and services in a country so every time you get a coffee or a haircut or buy a new car all of those things contribute to a country's GDP and generally a growing GDP is good and the declining GDP is bad and if a country's GDP has been declining

for six months then it's considered a recession people who stopped spending as much money business profits will decline people will lose their jobs and then they can't repay debts etc etc recession can really lead into a downward spiral and you're probably wondering our Kay James I get that but what causes a recession and there's the thing you never really know for sure there are so many factors and variables that contribute to any recession it's hard to pinpoint one thing which leads us to the first rule nobody can predict the market okay if you Warren Buffett

or if you Jimmy Buffett nobody knows if this stock is gonna go up down sideways or in [ __ ] circles does that make you anxious because if you're gonna profit from recession there's one thing you need to know do not panic because no matter how bad the market looks there's one thing that people like Warren Buffett know for sure the market will always bounce back write that one down because it's all fun and games when the economy is in a boom but when the inevitable crash happens guess what people do they panic and they

start to sell the homes that they own decrease in value so they sell it the stocks that they have a decrease in value so they sell it notice how I said when the inevitable crash happens wyan over the pool I thought you said you can't predict the market James perhaps it would have been more accurate for you to say you can't time the market because one thing is for sure the market will always eventually crash so there are your three rules remember them clearly and don't panic [Music] the economy is booming people are spending their

money like crazy buying the latest clothes gadgets whatever their heart's desire it is consuming time and that means credit cards are flying out of wallets people are racking up debt like crazy but it's all good the economy is flourishing so what are you doing now is the time to sharpen your weapons rally your army because whilst everyone is getting greedy this is the time to prepare for disaster remember the market will always crash and although you might not know when how or why it is always important that you prepare before it happens the first step

is to stop spending like everybody else start saving and building up your capital avoid debt as much as possible and build up your credit score when that inevitable crash comes you want to be the one with deep pockets and a healthy credit score ready to take advantage of those juicy low interest rates that come with the recession there's nothing worse than being surrounded by gold with no tools to harvest it go love that good because there's an economic collapse on the way and it's time to make your riches [Music] death divorce defaults it is these

three things the reigned supreme during a recession in a society where money is heavily relied upon for keeping the system going the collapse of that very object has dramatic consequences and the bigger the crash the harder the hit in a recession you can expect people to lose their jobs and you can expect people who have still kept their jobs to have their income reduced this means that people will be unable to pay off things like mortgages or any other debts that they've racked up during those sweet times of economic boom there's a rise in panic

and in fear and everybody is selling selling selling they're selling their stocks they're selling their houses they're selling assets that they once seen grow in value now decline nobody is even thinking about investing their money but you've prepared for this haven't you see behind all that panic and fear of everybody else in the media there is a goldmine of opportunity again death divorce defaults these three things are riddled with opportunity it's just a matter of choosing how you want to make your profit and running with it so what should you be doing during this time

of economic collapse that's right invest back into the very economy that is collapsing and whilst that might seem silly to the people around you you know something that they don't for the market is always going to bounce back and here's the best investment advice you can get buy low sell high let's look at real estate the more motivated and urgently someone needs to sell their home the more likely they are to sell that house for cheaper and guess what the three biggest motivations are for people to sell their home death divorce defaults with those three

things already on the rise during an economic collapse real estate becomes cheaper homeowners are becoming desperate to sell their houses and to make matters even worse guess what happens to the amount of people who are willing to buy a house there are fewer and fewer of them I mean all through all people are losing money they don't have the finance to buy a house and with all these motivated sellers along with their cheap real estate on the rise guess who's gonna come in and take advantage of it all this is why the preparation was so

key because by now you should have a good amount of capital saved up and a healthy credit score so that banks are more likely to trust you when you come to them and ask to borrow money to buy property your strategy from here can differ you can buy the property and let it out for a long period of time to generate some sweet cash flowin if you bought the property or a really low price it wouldn't be hard for you to start seeing returns on it others will let it out during a recession and when

the real estate market bounces back up as it always will you can then sell it and get some generous returns on that not feeling rich enough yet let's look at the stock market just like real estate stocks are cheaper after all people are losing their faith in the market nobody wants to invest and what's one of the biggest influences in the stock market emotions during recession everyone is selling their shares out of fear I mean these people have put so much money into the stock market they're now seeing all of those shares decline I mean

the only way for them to even salvage a bit of that money is to just sell if only they knew what you knew which is that the market will always bounce back so it is time to open up that wallet and go bargain hunting because in a recession everything is on discount let's look at the S&P 500 as an example this is an index fund that is built up of the top 500 companies in the United States during the 2008 financial crisis that S&P 500 dropped 35% but if you had invested in the S&P 500

during the 2008 crisis you would have four times your investment because right now the S&P 500 is at the highest it has ever been let's look at businesses yeah not all businesses fail during a recession in fact there have been many that have thrived let's look at the 2008 financial crisis again because it's the most recent one that happened I've already mentioned Groupon which grew exponentially during that period of time another one is Walmart and another one is Dollar Tree what are these businesses have in common they're in some way related to cheaper prices and

discounts and I mean it's not hard to see how that can come in handy during a time of financial struggle and just like with any business money comes in when you solve people's problems and a company that is offering cheaper prices on necessities like groceries and other services they're gonna make a ton of money but you want to know what other companies profited during the 2008 recession Hasbro is another example Hasbro is a toy manufacturer for brands like Power Rangers transformers My Little Pony manopoly Netflix during the peak of the recession gained three million members

in fact many companies in the sin industries which includes things like tobacco and alcohol for the exception of gambling do really well during a recession notice the trend a lot of these companies are selling escapism it makes sense right the recession is hard a lot of people are struggling the last thing they want to do is think about that so just turn on the Netflix the YouTube buy a toy for your child sip a glass of wine at night and don't think about your worries is by copying and investing in businesses like these that allow

you to replicate similar results during the recession although the entrepreneurial route is a much riskier one and once you've made your purchases it's time to sit back and wait this recession out before the economy as it always does bounces right back up and there you have it your a session rich cuz the last time we had like a big crash in the US I made so much money that was ridiculous of course the most important part of all of this was the preparation stage and whilst you can't time the market just know that the crash

is going to happen at some point now the last recession that happened I was only a kid it was the 2008 crash but my dad for example was heavily into property and real estate and I know that he benefited a lot from investing in real estate during that period generally the market is always growing so the more time you keep your investments in the market the more profits you can see come from that which is why I say the younger you are the better now really a recession can be a very difficult time for a

lot of people and whilst I'm not jumping and enjoy for the next recession to happen it will happen at some point so you might as well make something from it thank you so much for watching but relax before you click off this video please do give it a like if you enjoyed it it will make my day I promise you and if you hated it give it a dislike and comment down below and tell me why I appreciate all of your feedback trust me if you comment down below I will respond to it I promise

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