Don't you hate those guys who repeatedly tell you the stock market is gonna crash?
I used to.
But then I experienced the GFC in 08' (not personally, I was 18 and broke as s***, but I saw what it did to a lot of people). That's when I realized it can happen. Things can go wrong.
And who better to listen to then people who have a large chunk of their net worth in paper assets. These people are incentivized to be hyper-vigilant on the happenings of our economy.
Since then, I've became fascinated by our monetary system...and a bit demoralized. It's a bit too cloak and dagger, too shady....if you ask me.
Because the thing is, not a lot of people have the time or the energy to dig deep into the monetary system. They got other stuff too worry about.
But the powers that be know this.
And they use it to their advantage.
Okay, before you think I'm a conspiracy theorist...let's get into the email.
I wrote this for a personal finance / investing blog. It's a story about an investment my friend made and about the future of our economy in the midst of Covid.
Enjoy.
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Subject line: Do NOT end up like THIS before a recession
She was looking at me with those big doe eyes.
Except her expression wasn’t nearly as cute as bambi.
My friend had just bought a crap load of shares in your favorite ev company with a CEO that everyone loves to hate.
(Think Joe Rogan’s podcast and the devils lettuce)
My friend the speculator decided to buy $20k worth of Tesla shares right after the split.
She bought a one way ticket on the Tesla hype train with no intention of ever coming back.
But unlucky for her, she didn't have too...the stock price came back down to earth for her.
This is called a bad decision.
Not because Tesla is a bad investment.
Because she made an unwise purchase.
She didn’t do her homework on Tesla, or plan ahead for the stock dropping in price.
Now she was up s*** creak and a pack of muskrats had stolen her paddle.
The worst part is she had just put a down payment on a car and now she REALLY needed the money.
This is what happens when you get too comfortable and spend money you don’t foresee needing.
Unfortunately, at the moment I see this happening all the time.
For those of you that aren’t aware of the ramifications Covid is having on our economy; It’s looking grim.
REALLY grim.
Some are calling for the worst recession in American history.
Job loss and unemployment claims are at historic highs.
Economic production is nearly nonexistent.
GDP saw a gigantic collapse.
Government debt is at all time highs (close to $27 TRILLION)
Government stimulus has gone through the roof.
Inflation looms.
Purchasing power is being threatened.
Civil unrest continues.
Small businesses are dropping like flies.
Bankruptcies are common.
And people CONTINUE to spend like there’s no tomorrow.
But there might not be if the spending continues.
When the stimulus stops...the jobs don’t come back...and when prices rise…
This is when people will stop spending.
But by this time it’s too late.
There is no nest egg. No savings. No emergency fund.
And the economy is so trashed and desolate...consumer sentiment so bad...that landing a job at your local restaurant or grocery store just to make ends meet won’t even be an option.
Businesses will have to cut back. Closures will occur from lack of business. And things won’t be looking good…
What’s this mean to you?
Preparing yourself financially for when the crash comes does not require an Elon Musk IQ to achieve...and you never know exactly when everything will come falling down.
That being said…
If you’d rather prepare yourself financially for the wicked road ahead, then you should check out my mistakes to avoid.
{link to website*}
Talk soon.
{company name*}
P.S.- If you’re an overachiever and already have a heads up on our economic situation...you’re surely looking for safe haven assets. I am too. And I think you’d get a kick out of some of the stuff I’ve stumbled upon. If you want a sneak peak, then head over to my blog to get your socks knocked off.
*Omitted for privacy
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