Look, I’m going to level with you. I think we’re screwed.
We all saw what happened last week because of “Brexit” (British Exit). The markets are in uncertain territory.
Add inflation and the potential for recession – this situation becomes even more complex.
People are tightening their belts.
Companies are lowering forecasts.
The only thing that’s keeping us from hearing about it 24/7 is all the other crazy stuff that’s going on in the country right now (from the election to the violence).
If it weren’t for those other headline-grabbing situations (and tragedies), we’d hear about an impending recession over and over again. It’s happening.
But that’s not actually the scary part. Weirdly, I think many Americans might be thinking, “Another recession? That sucks. Well, we got through the last one; how bad can this one be?”
There’s actually something far scarier going on, but to see it we have to look outside of our borders.
There are crazy things happening in economies all over the world:
- Canada, our country’s largest trading partner, has a fairly stable economy right now (which protected it in the 2008 recession, too), but it’s taken a beating with low oil prices and a VERY costly city-wide evacuation of tens of thousands of people. Their overheated real estate is poised on the verge of collapse, too.
- In Europe, the so-called “Brexit” (Britain’s exit from the EU) has shook up all of Europe.
- The Middle East is a mess. What more do I need to say about that?
- And China is entering what could be an unprecedented period of deflation that could impact us globally.
I’m not going to review every nation or region in the world but I just wanted to show you that we’re seeing something we’ve never seen before: massive, sweeping, global changes (and VERY scary ones) happening in a lot of key economies.
Even countries that survived and thrived through the 2008 recession (Canada and China and parts of the Middle East) are hurting right now and poised for a fall… and our world’s economies have never been more interconnected than they are right now.
When some of these nation economies start to collapse – look out. It’s a house of cards that will be dramatic and very painful for a lot of people.
Even investing legend George Soros has said similar things – that the world is facing a massive economic crisis that we’re simply not prepared for.
I’m not telling you this to scare you but to actually help you…
You see, when the global economy melts down (not IF but WHEN), who will be the people who hurt and the people who prosper? (Yes, even in a global meltdown there are people who prosper).
- The people who will be hurt are those in economically sensitive jobs (retail, tourism, construction, automotive, luxury goods, tech, and start-ups).
- The people who will be hurt are, like in 2008, those who are leveraged to the hilt with multiple mortgages on houses they can’t afford.
- The people who will be hurt are those who are holding a significant portion of their investment portfolio in stocks.
That’s A LOT of people. Actually it will be far more widespread and far worse than the recession of 2008.
But who will prosper?
Ultimately those who prosper are those who are prepared – those who knew it was going to happen and did something about it beforehand.
Maybe you (if you heed my words and take action).
So, what can you do about it? Here’s what I suggest…
Start liquidating your equity positions (i.e. stocks, mutual funds, etc).
Then, buy turnkey rental real estate.
Or at least start thinking about it… getting your ducks in a row to do so. (i.e. Move your money into a place where you can hold real estate; make sure your IRA is a self-directed IRA; and so on).
Because when the next crash happens, the people who will survive it are those who own the one asset that tends to preserve its value (real estate).
The same asset that historically increases in demand during a recession because people need a place to live (rent) but cannot afford to buy a house.
Rental owners do very well in a recession because there are many factors working together for their benefit – but primarily it’s the bank’s tightened lending policies that keep people from getting mortgages (or often foreclose on hardworking families who no longer have a place to live).
This increases the number of people who need a place to live and will rent.
And if you own a rental property, that puts you in the PERFECT position to prosper.
Just imagine acquiring a couple cash-flowing properties and enjoying the regular income from them, and sleeping soundly at night even when other people are worried about whether they’ll have a job tomorrow.
Now it’s your turn: I’ve given you the warning and the facts; I’ve given you the strategy to survive (and indeed to thrive) and now it’s time to take action. Trust me – you won’t want to leave this too long because… well… just look what happened last week!