What Falls First?

Recessions mean failure for most and success for a few. What happens next?

We are bound to enter a recession officially with the current GDP output forecasted to be negative again. So now what? All of those tech startups that raised billions but tanked this year are done. Think most IPOs from 2021 actually. 

Is crypto down? No, but if regulators come in then yes it is. The technology is the future but only if the government doesn't touch it.

The real estate bubble is cracking and will keep cracking as long as rates are jumping up by the day. There goes that avenue.

Where does this leave you? Helpless? Possibly. If your money is sitting in a bank account, it has lost 10%+ this year due to inflation. Yikes. Stocks down 15-20%? Yikes again. And your home value falls too? Not even remotely fair to think how bad you are down.

Cut back on useless spending. Try to make an extra $20-$30 bucks a day. Drive Uber or do something on Fiverr. Invest in SPY or VOO. Collect your check in 5-10 years when things are stable and thriving again. If they aren't, we failed anyway so you didn't miss out.

Recessions are asset transfers from rich to poor and nothing more. The companies that fail will be scooped up by bigger ones on government subsidies who only grow more powerful. Every dollar put away in VOO today will be worth more than sitting in your checking account in 10 years.

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