2024 is an election year, so there's no way
the government will let the entire
economy go down the drain.
Right? Right.
That's what we're all still hoping.
Everyone agrees it's not going to be
an easy year to navigate.
With the recession deepening,
But not all asset classes are created equal.
So here are 15 asset
classes or sectors that are going to perform
well in 2024.
First up, profit.
First business equity.
Profitable businesses
are the new gold mines.
Businesses that on a monthly basis
spend less money than they make are now
the absolute standard
of financial success.
Private equity firms
have been scooping them up one after the other.
Boring businesses have become a trending
topic amongst your favorite
financial influencers.
Owning such a business,
or at least a part of it,
allows you to sleep just a bit better at night.
But the operation part is becoming
increasingly difficult,
with suppliers pumping up their prices
and the cost of goods going up.
This will put pressure on the salaries
of the people working for you
as long as your employees generate more value
for the company than they're paid.
Your good
next stop cash.
Well, when you look at that, cash
is actually an incredibly valuable asset right now.
The golden rule here
is don't buy stupid shit.
Hold on to your cash with every bit of energy
left in your body because very few
will have cash on hand
when the opportunity presents itself.
Don't be afraid to be super aggressive
when offering to buy anything,
since cash is scarce right now.
People will give you preferential
terms and better deals
for cash.
It seems like inflation
is under control for the time being.
So if you've got the powder, keep it dry
for 6 to 8 months
and you might just strike
gold.
Then there's Bitcoin
cash and Bitcoin on the same list
of thriving assets.
Crazy, right?
Not only was Bitcoin
one of the best performing assets of last year
going from 17 K to 40
4k in 12 months,
but this year will see another halving.
It's a technological change.
The bitcoin algorithm where the reward for
the miners will be cut in half,
making every new Bitcoin
more expensive to create.
Historically, prices
have shot up around halvings.
Some say the price change is already baked in
and are calling the price on this cryptocurrency,
while others look at it as the only asset
left has for us.
We haven't touched our stash.
It's safe in cold storage.
Strategic.
Real estate.
Not all properties
share the same attributes.
Some are simply superior to others.
Great commercial properties are still
going to cash flow well for landlords
since businesses are looking for
any opportunity to cut costs.
Relocating to a cheaper
office is usually
one of the first levers to pull.
Mid-range and noncompetitive
commercial properties are going
to struggle massively.
Location and proximity to
the city center is another plus.
For example, most Airbnbs are going to get hit.
As people travel less,
the money will flow to the top
10% of listings
and everyone else will
struggle to find guests.
Art There is a saying
amongst the rich that goes like this.
Recessions are for the middle class.
The entire economy
around rich people is thriving
no matter what a recession in the world of art,
at most forcing some unique pieces
to resurface on the market
as people look to liquidate
for profit in order to acquire more cash.
Young people have caught the taste for art money
since it's no longer just a billionaire's game.
According to Sotheby's,
the number of collectors bidding on art worth
20 to $50 million
surged 60% just last year.
Since now, you can buy
fractional shares in
blue chip art.
Over 56% of these bidders favored
contemporary art.
Sound familiar?
Well, it's the art our sponsors and friends
at Masterworks have been buying up for years.
Wealthy collectors, young
and old, are rushing to find it
because it's outperformed
traditional investments for decades
and it still has potential
to grow long term.
This caliber of art
delivered over $45
million in returns
to their investors since inception,
and it's never been as accessible
as it is right now because those investors
didn't have luck or art market connections.
They weren't even art experts.
And because of masterworks,
they didn't need to be.
Over 887,000
people have already joined the platform.
And ALUX viewers have been getting
priority access for over a year
now by going to
masterworks.art/alux or by clicking
the link in the description
abroad Investments.
If you live anywhere in the world
where prices have simply gone crazy
and there doesn't seem to be anything worth buying
that actually justifies the price.
We're looking at you, Canada and the UK.
Then it's time to look abroad.
Spain and Portugal
are the hot tickets in Europe right now.
Buying an apartment
near the sea for around 100,000 U.S.
dollars or a house with a decent piece of land
for under $200,000 is something
that's impossible to find in the West.
If 15 years ago you struck gold
buying property in Thailand or Indonesia.
Ten years ago it would have been
Dubai, Vietnam or Croatia.
Now it's looking like
Colombia, Ecuador and other parts of South
America are where it's at.
You can pick up a two bedroom Cartagena
for under 50 k
consumer staples
no matter how hard the recession hits.
There are some essentials
that people still need to buy.
So stocks in these companies will do well.
Actually, consumer
staples crushed
during recessions.
Business Insider looked at the performance
of consumer staples in 2015 and found they'd
beaten the S&P 500 by 49%
over a 25 year period.
However, most of that outperformance
was due to their strength
during three recessions.
This is a look at consumer staples during U.S.
recessions.
So if you're looking to make
some plays in the market,
this might just be your best bet.
Financial indexes or ETFs
you feel like you understand.
We are big on indexes over here.
The truth is,
if you've got just a little bit of money,
you're probably going to do better.
If you use all of it
to buy one or two stocks and companies.
You really believe in.
If you're right, you'll do well.
40% plus returns.
Vanguard Large
Cap ETF V
Aventis International Equity ETF,
AVID Emerging Markets,
China ETF
or find yourself
a fixed income ETF.
Or at least you know what you'll earn.
You can search for these terms on your own.
Personally, we are big on indexes.
We dollar cost average every quarter
and in times of true recessions
we double down on how much we're buying.
It's served us well so far.
Drugs, big pharma and health
centered subscriptions
from our pick to people now
taking pills by the dozen
to an obsession with the extension of life
among those who can afford it.
Health is having a moment right now, a big one
with money being poured into the sector
at an unprecedented pace.
We got Vienna's epic changed the way that
people think about weight loss and became category
defining products
in times of recessions.
People usually consume
lower quality foods,
which leads en masse
to higher health problems.
So even more pills
do it yourself.
Services focused on money
saving or money generating
Additional income
has become the norm outside
of delivering food or driving for Uber.
Companies that can supplement
an individual's income will do extremely well,
especially if the focus
is on saving the users money.
Look, we're not going
to be shocked if Groupon gets reinvented.
If a cheaper version of
Airbnb or booking comes into play,
the other focus will be
on getting your life together.
Most people have been overspending
and lack basic understanding of finances
or what it takes to build wealth.
Although they don't live paycheck
to paycheck, they live what we like
to call a holiday
to do surgery, which is kind of the same thing.
At the end of the month.
You still don't have money left.
The way you take control of
your life
is by learning the secrets of how money moves
and what actionable steps you need to take
to get more control over your life.
If you go to
alux.com/app
you can get the ALUX app that was designed to do
just that and save you thousands of dollars
in coaching fees, seminars and whatever
miracle formulas others are selling.
The app was designed to create
measurable progress in your life.
Try it yourself by going to
alux.com/app
Precious metals.
If you want to go basic
buy gold.
It match the performance
of the S&P 500 last year and it's likely going
to do the same this year unless things go south
or really bad.
In times of recession,
gold outperforms
the stock market by 20 to 40%.
So think of it as a way
to hedge your bets.
Also, if you want to, you can buy gold bars
and actually touch it, hold it in your hands.
And you can't do that with a stock.
And you know, most trading platforms offer you
the option to buy and hold gold
the same way you would do with stocks.
So you might want to look into this.
Gas and oil,
the volatility of this sector
has kept us away from it.
But the traders that we know in this space
have made a killing in the last year,
and they're pretty optimistic about 2024.
We'll talk about renewables in a second,
but most of our energy
still comes from oil and gas.
War is usually great for this sector
and so far things don't seem to be quieting
down on the eastern front.
Solar and energy.
As a sector,
it's slowly trending up.
It's one of the few safe
bets over the next 20 to 30 years.
The macro trend is here and it's happening
on the retail side in an effort
to minimize long term costs.
People would rather sacrifice
the present and pay the cost
for some solar panels
and an in-house battery.
At least those who can afford
it are considering this.
On the business side of things, it's
all about the carbon tax and the benefits that come
with the transition to electric.
International currencies.
You might be thinking
the dollar is doing really well right now
and you'd be shocked to learn that since
they've been printing money like crazy, it's slowly
falling behind other international currencies.
1 CHF is $1.18 U.S.
1 GBP, $1.27 U.S.
€1, $1.10 US.
Having your savings in multiple currencies
or at least a more stable currency,
can be your hedge
against the money printer going.
Cheap labor
or immigrant human capital.
There's always going to be someone
who'll happily do your job
for half the pay
because they're coming from
less than that.
Human economic migration is probably going
to be one of the sectors that we'll see
most often on the news
as the boring business.
As we mentioned earlier,
we'll need skilled workers
that are willing to work for how the market,
not the government,
values their services.
They'll work in your country
and send that money back home.
What are you seeing in
your industry Elixir?
Since we have people from all around the world
here, how does a 2024
feel from your perspective?
Let us know in the comments.
And since this is the first video of the year,
of course we'll keep
the bonus part alive.
Luxury products are stalling
even in secondary markets.
For years, we've looked to the luxury market
as a canary in a coal mine,
and the secondary market
especially has proven to be a really good indicator
of how things are actually going for people
who do have a bit of money.
Now, for those of you
who don't know what we're talking about here,
there are businesses and platforms out there
where people resell
luxury goods either
second hand or new, and where not even
the discounted luxury products get sold.
You know, the rich are contracting
and holding on to cash for other purposes.
That's exactly what's happening right now.
Luxury watches that used to sell
for 18 to $20000 early
last year are now selling for as low
as 9 to 12000 at this point.
One might ask themselves if watches aren't
just nfts for adults.
Whatever the case, we will live through 2024
together, Aluxer with some
big changes to our content coming soon.
These are the last few
videos in this format as
things are about to change.
If you welcome it, write
the word change in the comments.
Let's see how many of
you are still around.