Let's face it we've known for a while now that a recession was coming I'm sure
you've been hearing for the past couple of years that this bullish market
couldn't last forever and with the global spread of kovat 19 we have
global recession means losing their job seeing their retirement account
evaporate or even losing their homes and while this is tragic to put it lightly
there are always opportunities even in the darkest of times which is why in
this video I will share with you five ways to profit during a market crash and
if you're new to the channel then hit the subscribe button below for more
life-changing content now I know that during this uncertain time optimizing
your finances may be the last thing on your mind but I wouldn't be doing my job
if I wasn't sharing with you how to not only survive the current recessionary
period we are facing but how to thrive and come out better than you could have
ever have expected which is why I believe that reviewing your finances and
making smart decisions must be on your agenda during this tumultuous time but
instead of sitting around trying to gauge the market bottom and trying to
predict when things will turn around I recommend you focus on these five key
areas instead number one control your emotions the first thing you must
absolutely do during a recession is to keep your cool if you're big into
investing times a financial recession can have you seeing your portfolio drop
30 40 or even 50 percent or more and this certainly doesn't feel good for
those who invest with money they simply cannot afford to lose their initial
reaction to seeing their holdings drop this much is to pull out their money and
salvage what they can unfortunately this is a quickest way to ruin your financial
state and avoid making a profit during a market crash now let me add one caveat
that if you need to pull out some money to cover your core expenses of utilities
and groceries then that's fine but otherwise you need to let your money
right out this financial hardship and here's why you see when the market
declines and you realize double-digit decreases in your portfolio holdings
cashing out your money makes it nearly impossible to recover think about this
if you were to invest in a stock or ETF what would you do a good return 5%
7% getting a 10% return would have you jumping for joy but when you pull out
your money during a recession you are basically slashing your wealth because
achieving the 40 to 50 percent return you will need to get back to parity is
nearly unachievable that is unless you leave your money and allow it to recover
even as someone who's been investing for a decade it's easy to lose sleep over
the day-to-day fluctuations in the stock market but you have to realize that you
are investing for the long-term unless you are retiring tomorrow then you are
probably investing to build up wealth over the next few decades which is why
you need to employ emotional control now also one important point to note is that
recessions are a relatively routine occurrence in the market in fact there
have been 33 US recessions since 1854 and investors who held on to stocks
eventually came out ahead every single time number two stay liquid and prepared
when it comes to recessionary times cash is king you see I typically preach that
holding your money in cash isn't the best idea because the longer it sets in
your bank account the more it erodes due to inflation that one to two percent of
rowshan over time decreases the value of your money however during recessionary
times I think we can all agree that losing one to two percent is much better
than the 40 to 50 percent that many people have experienced in the market
this is why your first goal is to build an automated system to create cash to do
that I want you to automate your savings and be deliberate with your investing
let's start with your savings you want it to be available accessible and
unaffected by the market your savings might not make money but they will first
ensure that you have cash to buy the bare necessities during these harsh
financial times and will also allow you to capitalize on opportunities that
present themselves now some of you may be saying that you have a little cash
and so your potential for capitalizing on investing opportunities are
non-existent but that's definitely not true if you are already tight on cash
and cash flow isn't strong consider refinancing loans in this low interest
rate environment this can be business loans mortgages or
even cars the key is to lower your outgoing cash requirement and have cash
on hand to weather the storm you might even
consider taking on new loans if the rates are low enough because as the
markets rebound your return will be much greater than the deaths interest rate
allowing you to profit the difference besides having cash you want to be ready
to buy when the time is right of course no one can time the market floor but
generally when stocks have declined in the double digits they are ready to be
bought if you are willing to hold them until the market fully recovers however
in order to capitalize on these events you need to be prepared and one way to
be prepared is to have a watchlist it's a tremely difficult to make
rational decisions on a day where the sp500 is up or down 5% or more investors
that make buy or sell orders based on fear greed typically don't perform well
over the long term one way to avoid impulse trades is to create a watch list
of stocks you are interested in buying well before they hit your target prices
but creating a watch list you can take your time than performing your due
diligence and learning and analyzing a stock well in advance when you actually
pull the trigger during the next big down day in the
market you don't have to scramble to react just trust in the work you've put
together beforehand and buy the stocks on your watchlist
now that you have cash and your watchlist you're in a position to thrive
and profit if you see the stocks you've been eyeing decrease perhaps it's time
to execute a trade or maybe you want to get more creative in ways to profit
during this time for example my friend Mike is currently building up a real
estate portfolio by capitalizing on homes that have been seized by the banks
as I said earlier there are many people in very dire financial positions and
sadly many of them have had to turn in the keys to their home and since the
bank doesn't want to hold these properties they are often willing to
sell them to individuals at ridiculously low prices number 3
renegotiate with everyone being in a recession is a unique position for those
who have debt because it offers you a very good opportunity to negotiate rates
with literally everyone you send money to on a regular basis one creditor that
most people deal with our credit card companies these companies are no
different than any other business and even in times of recession they want to
ensure they are getting paid however many people simply can
I'll pay them during these hard financial times and as such they become
much more open to negotiation for instance there is no reason you can't
call up your credit card company and explain that you cannot afford to
continue paying your 20 percent Interest balance but at 16 percent maybe you
could companies are much more willing to make compromises on these things during
recessionary periods and this is your time to capitalize beyond renegotiating
you should also be looking into refinancing if you have a credit card
you could look at refinancing it into a car loan which will lower your payments
do you have a mortgage with a lot of equity built up if you do refinance it
and pay off a business or student loan right now is the perfect time to make
smart decisions and one that could be very lucrative is lowering your rates on
every single bill you can number for pay down your debt you might find this
method of profiting during the recession a little bit obscure but think about it
for a moment having debt is the opposite of having an investment the only
difference is that holding on to debt is often more costly than investments are
profitable yes even during a recession now I want to recommend that you pay
down your debt during a recession versus investing heavily into the market for a
few reasons and the first is the actual return even during recessionary times
the chances that you were able to secure a large return especially in the short
term is rare maybe you see that stock you bought realized a 10 to 15 percent
return that's great but you know what else will give you that much of a return
paying down your debt when I say paying down your dad in this
case I do mean your credit card debt even if you were able to renegotiate a
lower rate say from 22 percent to 18 percent this will still be a better
return than most stocks you will invest in second continuing to hold on to this
debt hurts our cash flow as instead of having more cash on hand every month to
savor and best you are sending out payments to your creditors instead
finally the reality is that many people are simply turned off by the thought of
investing during a recession just thinking about how much their portfolios
have declined makes them uncomfortable and if it sounds like you then don't
worry because there are other ways to thrive during this tough economic time
folk - you're free cash on paying down high
interest debt one way to do this is to make sure your debt is organized
normally advise that you organize your debts from lowest balanced the highest
balanced or from highest interest rate to lowest interest rate depending on
your debt repayment preferences but if you want to maximize return during this
recessionary period then you need to follow the dead Avalanche method and pay
down your debts with the highest interest rates first this way you can
eliminate your costliest debts and secure the highest returns possible
number 5 invest in yourself I know that investing in yourself sounds like cliche
advice but it's so often recommended for a reason and that reason is because it
works during recessionary times especially during the Cova 19 pandemic
you're normally social routine has been broken which means more time at home
this is where a choice exists you can decide to use all this extra free time
to play video games or watch every single TV show and movie on Netflix or
you can leverage this free time to get yourself ahead I've personally been
reading a lot more during this time of social isolation and taking online
courses to continue to improve my knowledge and I recommend the same for
you I can promise that playing video games will not help you profit when this
recession finally ends but investing yourself certainly will maybe that's
through reading more books taking a course like my side hustle success
course where I teach you how to make more money or just watching videos on
YouTube well many people can only see this pandemic as being detrimental to
their life those who will come out of this even stronger are the ones who make
the right decisions now and use this time to better themselves as much as
possible thanks for watching if you want to go from the life you have to the life
you deserve then hit the subscribe button now
you
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