The 2022 Recession | How To Prepare For The Next Market Crash

Introduction Of The 2022 Recession | How To Prepare For The Next Market Crash

The 2022 Recession | How To Prepare For The Next Market Crash. A finance degree and I’ve worked in finance pretty much my whole career I just left my job at a publicly-traded bank here in Northeast Ohio to pursue YouTube full-time so when I worked at this bank I’m not gonna say you know what bank it is.

The Krauser Credit Associate

I was a credit analyst well it was in the Krauser credit associate which is a step above an analyst but ultimately the same thing for layman’s terms I analyze companies of numbers their financials their balance sheets all that stuff and just to see if they were creditworthy a lot of our middle-market companies that.

I was analyzing they were pretty much being downgraded so they would go from what we call a let’s call it a 13 risk rating down to a 17 or higher the lowest that you can go is an 18 the higher the number the worse it is so like the US government would be a credit rating of 1 right so I started to see firsthand that these middle-market businesses.

The 2022 Recession | How To Prepare For The Next Market Crash
The 2022 Recession | How To Prepare For The Next Market Crash

That were businesses anywhere from like you know 50 million at 250 million dollars in revenue and you know Northeast Ohio they were starting to get down created like crazy and you can see that their numbers were getting worse year over year so this isn’t just some like MSNBC headline this is my actual first-hand experience and I do know it’s anecdotal but.

This Recession Will Start Sometime In 2022

This does play into a role later in this video so also at the company I worked for and also with all the other finance companies that I’ve been reading about layoffs started to happen this means that you know banks and especially people working in the finance industry they were starting to see the writing on the wall that.

The economy is going to slow down another good indicator is what I mentioned earlier in this video if you look at GM and Ford and all those other companies they’re cutting about 10 to 15% of their workforce overseas and also domestically so with all that being said the writing is kind of on the wall and I just wanted to mention that so my ultimate prediction is that. You Can Also Read How To Negotiate A Higher Salary Top 5 Ways In 2022.

This recession will start sometime in 2022 and it’s not going to be a bubble it’s not going to be like if you remember in oh seven we had the subprime mortgage crisis where people that were making 50 grand were getting qualified for houses that cost you know five six hundred thousand dollars right these were cops and nurses living in mansions.

A Long And Slow Recession

This is not the issue it’s not going to be like the housing bubble or it just took a little pinprick and the whole thing kind of exploded right this is going to be long and slow in my personal opinion and that because we’ve been pumping in artificial money into the economy for about five or six years now in my personal opinion so with that being said of this being.

A long and slow recession I want to start with my defensive strategy for everyone first the best offense is a good defense and most championships are won because the team is very good at defense the first one and a lot of these are going to sound like common sense but common sense is not always common practice remember that.

If that was like a tweetable quote remember that common sense is not common practice so the defensive strategy first I have is to pay off all high-interest debt really what I want to say with this is pay off all debt period if possible because these high-interest debts or all debts, in general, those monthly recurring payments of stuff that you bought.

If You Lose Your Job In A Low And Slow Recession

That you don’t need just to impress people you don’t like it’s gonna drain you if you lose your job in a low and slow recession so it’s gonna be kind of like death by a thousand cuts you’re gonna have the house the car the furniture that you finance the thing you put on layaway you know all the stupid things that you didn’t need that consumer electronics.

The TV the appliances all that stuff the little $50.00 a month payment here the little interest payment there it’s all going to come back to bite you in the butt so number one is to pay off all high-interest debt number two I’m going to take a page out of my friend Dave Ramsey’s book and that’s we’re gonna create a three to a six-month emergency fund.

You should have this anyway regardless of the good economy or bad economy or recession or not you need a three to six-month emergency fund because you may get laid off during this period a lot of people a lot of companies are cutting their workforce and you may be one of them if you get laid off this will save your butt period end of story trust me.

The Stock Market Was Losing 40 Percent

I know so I graduated in December of 2010 when unemployment was almost 10 percent that means one out of every ten people that were even looking for a job was unemployed with all this being said I want you to start a three to six-month emergency fund the third one was being defensive here this is no offense this is defense.

If you already have positions established in the market do not panic cell this is like when I poker player or a gambler goes on tilt and they just go crazy do not panic sell this is the worst thing you can do you’ve spent all this time and money investing into these companies and you see them go 10 15 20 percent down.

You’re thinking holy crap let me get rid of this falling knife right no do not panic sell if you look at historic charts you will see that even in oh seven and Oh 8 when most of the stock market was losing 40 percent of its value all those companies pretty much doubled overtime over the next 10 years that’s pretty much how I’ve built my stock portfolio.

I Graduated High School Lost My Butt In The Recession

Since I was 18 years old so I’m 31 right now at the time of this recording it’s 20 19 I started investing about 13 years ago and like oh six right around there right when I graduated high school lost my butt in the recession but ever since then you know you could have been a monkey throwing darts at a dartboard and made money in this market so do not panic sell now.

Let’s talk about the offensive strategies so once you’ve done all of the defensive strategies that I’ve talked about in terms of building your emergency fund and making sure not to panic cell you need to go on the offensive you can’t win if you’re not playing good offense and for those of you that can’t read my hieroglyphics this says offensive so.

You need to start building your war chest you got to build your war chest and that war chest is going to have all your money and gold bars and silver and you know this and that and it’s glowing filled with the money I wish I had like a yellow marker but that’s not gonna show up anyway so just pay attention once you start building your war chest.

That Most Fortunes Are Made During A Recession

This is the money that you’re gonna use to invest and this is the money that’s going to grow for you most fortunes are made during a recession let me repeat that most fortunes are made during a recession if you picked up a bunch of rental properties in Oh 708 they’ve pretty much doubled in value if not tripled in value at this point and you’ve also been making a nice cash flow

This whole time that’s just one example look at stocks a lot of my stocks I’ve gained almost a hundred percent on since the last recession granted that was a very big bubble and almost like a once-in-a-lifetime opportunity but any correction is a time for scooping up more assets so you need to save as much money as possible to use to invest and you need to grow that war chest once you’ve grown that warchest you need to do number two this remember this is gonna be in my personal opinion at a low and slow and long recession it’s you need to systematically invest.