There is a lot of talk about a Recession these days. It seems you can’t read anything or watch any major news without hearing about the dreaded “R” word. This has created a lot of panic for investors who are struggling and feeling overwhelmed because they fear that they will lose their hard-earned money in the stock market and from other investments.
Before you jump on the “struggle bus” and start panicking as well. Let’s get a deeper understanding of what is a recession. A recession is a significant decline in economic activity that lasts for months or even years. A recession is declared when a nation’s economy experiences negative Gross Domestic Product (GDP) for two consecutive quarters, rising levels of unemployment, falling retail sales, and contract measures of income and manufacturing. Recessions are considered an unavoidable part of the business cycle—or the regular cadence of expansion and contraction that occurs in a nation’s economy. (Source: forbes)
In the simplest terms, a Recession is where the economic activity of a country declines for at least 6 months in a row and at the same time people are losing jobs, fewer people are out shopping for discretionary items and income and manufacturing are declining at the national level.
It’s also very critical to point out that when you hear people worrying about a Recession, they are really focused on the United States. In Jamaica, GDP is actually increasing in the last quarter. The economy is showing signs of expansion; at least that’s what the data shows.
Since 1980, there have been five (5) recessions in the United States of America, with the most recent being in 2020 with the CoronaVirus Pandemic. The most significant recession period was in 2008 during the global financial crisis. A recession can be caused by several factors including high debt, asset price bubbles, unexpected occurrences that create financial disasters, inflation, and technology. The 2008 Global Financial Crisis was caused by asset price bubbles and high debt and the 2020 Pandemic was caused by an unexpected occurrence (COVID-19) that created financial disasters.
Now, here’s the question I want you to ask yourself..Are you experiencing a personal recession? We know the US has technically hit the criteria for a Recession but what’s the status of your personal net worth?
As an investor, you can experience your own personal financial recession if there have been increased job losses, business closures, and total investments declining more than 60%. If you are not experiencing all 3 of these occurrences then you are not experiencing a personal recession.
Now if I connect the dots, that means you should use this moment in time to focus intentionally on building wealth. Use this time to open that investment account, buy stocks, buy real estate because we don’t get many opportunities like this to fast track how we grow our money.
So let’s make this opportunity, a money making opportunity.
Since 2020, the number of millionaires across the world grew from 5.2M to 56.1M with more than 1% of the global population becoming first-time millionaires. This can be attributed to stock markets and real estate used as key strategies. This goes to show that money can still be made during a global crisis. Money is possible.
Millionaires like Warren Buffett have been using this period to make large acquisitions. In 2022, he purchased three stocks: Activision Blizzard ATVI, Apple AAPL, and Chevron CVX. The purchasing of these stocks shows confidence in the company moving forward. Are you making investment purchases right now or are you sitting on the sidelines hoping for the best?
The road to one million can be achieved by taking advantage of current investment opportunities, pivot into high performing investing strategies that work in this type of economy – industries, sectors, exotic strategies, protect your Income, and Passive Income Investing Strategies.
I want you to realize that even though we may be experiencing an economic recession, your personal finances are not experiencing a recession. Use this pivotal moment to make the change to becoming a better investor. You will never get this opportunity again any time soon. Money loves speed so get to implementing a solid investment strategy today.
