Disclaimer: this isn’t financial advice, it’s just what I plan to do and what I believe, do your own research and you’re welcome to follow along or not.
There’s a storm coming, a cold front is about to sweep the nation. I don’t mean icy temperatures, I mean Icy GDP growth. I believe Our economy is going to cool down by the end of 2020 – perhaps colder than it has been in a long time – but now is the perfect time to fill up a stockpile with resources to help survive the economic winter and be in a better position during the next economic spring.
Fear Mongering is commonly used to sell products, and I don’t want to do that – so I will be making no money off of this article. I’m only trying to give you my honest opinion about what I’m doing to not only survive our coming recession, but thrive from it. I believe the best solution to tackling a problem is being prepared for it – by grabbing the issue by the balls when it’s least expected I have a chance to get the upper hand – and I believe this article will help me be prepared for the problem that is our next recession.
The main issue during a recession – besides our economy plunging into the toilet – is that some people don’t have enough extra money to invest and to take advantage of the price of stocks going on sale. During a recession people are more concerned with keeping bread on the table which is understandable. What they do have during a recession is lots and lots of stuff – things they bought during the previous economic boom they don’t use and can’t resell because everyone is broke. On an unrelated not I’m following the old saying “Sell High” while the market is still hot and people are still consuming.
I’m currently selling as many of my possessions as I can on sites like Mercari trying to accumulate as much cash as possible. I’ve done more than $500 in sales so far and estimate there to be another $2,500 – $3,000 of things I don’t use and am planning to sell. $3,500 may not seem like a lot of money, but if I’d had that number just 11 years ago from today I’d have had enough to buy two shares in the NASDAQ – those shares were worth more than $17,000 in 2019.
Sometimes I ask “Where should I place they money I acquire?” and although a mattress is a classic trope in movies, it’s the perfect place for inflation to take a chainsaw to it. A much better place is in a high interest savings account – although there are plenty of choices, it’s best to pick one with a great track record like charles-schwab (no this isn’t an advertisement) or another reputable brand so that is what I’m picking.
After every storm there is a clear sky and after every winter there is a spring – a time for growth and rebirth. The old adage is to buy low and sell high – right now the economy is high so I’m selling while I can, because I believe the market will drop in late 2020 – and that is the time to strike – to my money stockpile to buy low, get wealthy and thrive during this recession.
Ricky J. Smith 