- Hey guys, it's Jatz.
And in today's video, we are going to talk
about ways you can benefit from the recession.
It is said that there are more millionaires made
just after a recession.
So, let's start comparing ways on how we can do this.
I'll be going through how you can benefit
from the stock market, real estate, crypto,
and the business market.
So make sure you watch the video till the end
and drop a like, and I would even share my very own plan.
Now, for those of you who are wondering what is a recession?
Well, essentially it is
when the economy activity of a country starts declining
for six months in a row.
This is how you know a country is doing bad,
as there is less business happening.
It is common to have a recession
and it usually happens around every 10 years.
It is part of the economic cycle,
so don't worry about what the media says.
You must be wondering,
how did we manage to get to a recession?
Last year, I was making thousands through the crypto world.
Stocks were as high as point and real estate was doing well.
Well, let me explain how we got here.
So we all know what happened to the world in 2020,
and the UK lost billions of pounds
due to no business activity taking place,
as everyone was at home, and no one was working.
We entered a recession as expected.
We saw the market crash in the beginning of 2020,
and a decline in business activity.
Now, do you remember the grant's businesses were given
to help them pay the employees
to stay at home during that time?
Well, this was the UK injecting billions of pounds
back into the economy so that we can get
some business activity going on in the economy.
But once more money is injected into a country,
the inflation rate rocks up
due to the value of money decreasing.
This leads to everything becoming more expensive
from takeouts to groceries.
Now, as everything becomes more expensive,
consumers spend less and start saving,
leading to the economy activity of the country decreasing,
and that leading to a recession.
So this is the current state of the UK economy,
but don't you worry, we can counter all this,
and as I said,
there are more millionaires made in a recession cycle.
So like we all know,
the stock market is usually the first thing
that gets affected by a recession.
Now this is due to the fact that it's a liquidable asset.
You can easily turn a stock into money.
This is the reason why many people fear
as it gets very volatile.
But if you understand the stock market,
you can make a lot of money.
Let me explain the events that have just taken place
in the stock market and how we can take advantage.
So, as we all know, last year, we had a major bull run.
Everyone was getting on the action.
This has led some shares to reach a stock price of X amount,
but in reality, the stock worth wasn't so high.
And we all know one company that's famous for that.
When we heard the recession was going to come,
the smart investor started correcting the market
and selling stocks,
as they knew the real value of certain stocks
had been inflated up.
Due to this many people had feared
the stock market is crashing,
as the price of stocks are falling.
Add that with a bit of news and slowly the fear takes over
and the stock market is sent down into the grave.
It's not a bad thing, as if everyone is selling,
you might as well sell to cover up, as now,
you can buy the stocks for what I call a discounted price.
This is a major thing people fail to catch onto.
As fear has grown, most new investors stop trading
'til the market goes back up in a few years time.
By the experienced investors, they simply jump back on
and buy the stock at discounted prices,
as the market will go back up for sure,
and the history proves it.
But if you wanna be safer,
then it's best to invest into ETFs or index funds,
as you can get shares of multiple companies.
So if one company stock fails,
you will still have other companies to protect you.
What I'm currently doing
is simply dollar cost average a ETF every month.
I'm investing 200 pounds a month into an ETF
and expect it to gain some returns over time.
I mean, in the UK, we have a tax free allowance
of 20,000 pounds,
so why wouldn't we want to invest in an ETF?
You can check out a platform called Vanguard,
where you can actually start investing
and it's completely passive.
So you don't have to keep doing anything.
You simply set your amount,
and it will take from your bank account every single month.
Also, if you're brave and you wanna buy individual stocks,
then make sure you buy in low volume
and see what the stock is doing,
as no one knows how low a stock can go till it bounces back.
So buy and then wait for a few months and then buy again
till you truly see the market turning around,
because you are to understand investing in stocks
is a marathon and not a sprint.
Opportunity number two, starting a business.
Now I know, I know what most of you're thinking
that you cannot start a business during a recession,
blah, blah, blah, but let me prove you wrong.
I'm sure you have heard of Uber.
This business started in 2009.
As we all know, after the financial crisis in 2008,
it was hard for people to spend money
but the one major cost was travel expenses
that many people couldn't get away from.
This is where Uber came in to help fix transport issues
and provided customers with a cheaper alternative
to reduce their transport cost.
They saved people money while traveling to work
and made Uber quite some money.
Over years, the business grew
and now is worth more than 55 billion dollars.
That was just one case study.
But look at this article,
and I'm sure you have heard of Snuggies.
It's a blanket that you can wear around your home.
And what perfect time to release it, after a recession,
when most people were laid off.
It was a huge success and made over 500 million
in its first five years.
The point I'm making is that businesses can thrive
as long as you come up with smart businesses
that can help fill in a gap in the market.
This isn't the only benefit.
It is the perfect time to buy businesses,
as some business owners would just want
to sell their business and not deal
with the hassle of a recession.
I know someone who has taken over many businesses
during this period
at a much lower price than he would've gotten.
And I started converting the business around.
The reason why some business owners
are selling in the first place
is because they have banks knocking on their door
to pay off loans they have took out
to open the business in the first place,
but due to bad management and the recession hitting,
they need to sell to cover up from legal action.
And now for my Amazon sellers
who have made quite a bit already,
this is the perfect opportunity to make more money
if you have a business that sells products
to people that sell on Amazon.
You can simply take the business over
and start selling on that listing,
kick the existing sellers,
and have all the profits under your name.
It's basically doing private label,
but on a listing which is already doing really well.
It's a really good business move in my opinion,
but yes, you do need some money to take over.
But like I said, this is something
some of you could have a look into.
Speaking from experience, look at my Amazon business.
Thanks to the recession,
I'm able to source small products for a discounted price,
as suppliers are getting less sales.
This means I can make higher profit
on sales I make on Amazon.
Now some may wonder why would people still buy from Amazon?
Well, it is because everything is also getting expensive.
So it doesn't matter if they buy from Amazon or Tescos.
The price will be higher due to inflation.
The customers won't have a choice,
so businesses will keep going on.
It's the harsh truth, but it's a reality in a recession.
As long as you as a business have not over-leveraged
and have your financials up to date,
you'll be safer and no banks or taxmen can go after you.
This is why I have Osome,
a dedicated e-commerce accounting firm
that does all my accounting for me.
They do my taxes and business reports,
so I can stay ahead of the game.
You can sign up right now using the link in the description
and get 110 pounds off on any package.
Trust me, it is worth having experts taking care
of your finances in these rough times,
so no one can take you down.
Moving on to number three, cryptocurrencies,
and yes, you heard it right, cryptocurrency.
Now I'm sure you guys disagree and say crypto is a scam,
but hear me out.
There are some shit coins, no doubt,
and many projects that I don't believe in,
but projects like Bitcoin, Ethereum
are something I still invest in.
The reason why I say this, because if you have heard
of the .com bubble that bursted in the late 1990s,
I see a similar thing happening with cryptocurrencies.
The .com and the crypto world were new
and went to have this major bubble and eventually burst
but we all know .com did eventually take over the world,
and I see the same opportunity with crypto.
The only concern is when to buy.
Now, this is the reason why I suggest dollar cost averaging.
I would buy small amount of crypto every month,
and let it build up in the hopes that one day
it becomes a huge return on investment.
Now this is my take, but you guys can do
what you feel is right.
And the fourth and final thing is real estate.
Now, yes, real estate is hard to get
for the majority of people watching this video
during a recession, but it is an opportunity.
some people can benefit from.
As we all know, the prices of houses at the moment in the UK
is insanely high.
This is because the demand of buying a home
is extremely high, whereas the supply is really low.
Now to counter this, you can see
there has been an increase
in amount of flats development around the area.
I mean, look how beautiful Wembley stadium look like,
but after the development,
you can hardly see the iconic stadium.
The point I'm making is that
developers have built these buildings,
but as the recession has hit,
some flats could end up being empty
and to cover this cost, developers could sell the property
of the flats at lower price,
and this is where you can benefit.
Now, I'm not saying this is how straightforward it will be.
I know some developers pre-book the development
before building them,
but if you see majority major real estate kings
made most of their money buying cheap properties
after the financial crisis in 2008,
and the best one is "Rich Dad, Poor Dad",
or you know him as Robert Kiyosaki.
This is something you need to look out for,
if you have the cash, obviously.
Now there will be hardships, but if you plan well,
then there is a lot of money to be made.
Just stick to one goal,
and you could be well set for the future.
If you wanna learn about online side hustles,
you can do in the meantime,
then go watch this video right here
and make sure you leave a like and subscribe.
And I'll see you in that video.
Take care, have an amazing day and peace.