What's up everybody? I am Jaspreet Singh, and welcome to the Minority
Mindset. Everyone is confused about the economy. China is seeing their economy
slow down, it looks like Germany is already in a recession, and here in
America, nobody knows what's going on. On one hand you have people talking about
how we're in the strongest economy ever, with the market booming and reaching
record highs, and then the very next second, people are talking about us being
on the verge of a recession. So if you're wondering what's the heck you should be
doing with your money right now, you're not alone. That's why today I'm going to go
over five things that you need to understand, and then I'm going to go over
what I'm doing with my money, so make sure you watch this video until
the end, but before we get into that, make sure you hit that thumbs up button below,
because it's like a virtual high five, and subscribe to the Minority Mindset
YouTube channel, that way you don't miss our new videos every single week. First: the
economy moves in cycles. So this isn't something that I just made up, this is
how the economy actually works. Our economy moves in cycles; there are times
where the economy is moving up—called a "bull market"—and then there's times
where the economy's coming down—called a "bear market". This, right here, was 2008 to
2010. During this time, nothing was happening in the economy, the economy was
at rock bottom, nobody was buying anything, and the
economy was horrible. Well, after that, the economy pretty much went straight up. In
2019, we reached the longest growth period in America in the history of time.
Now we're seeing major economies around the world starting to slow down, and
everybody's wondering what's next? Will we keep going up higher, or will we come
down, or something in between? Nobody can predict when a recession, or a down
period is gonna start, or how big it's going to be, but, you could pay attention to
what's happening around you, this way you can be smart with your money. The economy
that we're living in today is not what it was back in 2012, which is why my
investing strategy is not what it was back in 2012,
which brings me to my second point: I'm selling the things I don't like. I invest
my money differently than the majority of people, when I invest my money I'm not
investing with the goal of selling my investment for a huge profit, I'm
investing with the goal of creating passive income. But because investment
values have come so high with the help of cheap money, I decided to sell some of
my stocks that I think are overvalued. And I also sold some real estate that
was profitable, but wasn't as profitable as I would like it to be.
Third: I'm paying close attention to what's happening around me. I talked
about what's happening in China, and Germany, and right here in America—we
have a very important election coming— Donald Trump is going to base his
re-election campaign based on the strength of the economy, so you can bet that
he's going to do whatever he can to keep money cheap, to keep interest rates low,
and to keep the stock market high. Will this work? I have no idea, only time will
tell. What I do know, is that this fight for cheap money is creating a massive
debt bubble, because the Federal Reserve cut interest rates multiple times in 2019.
This makes borrowing money easier, so consumers and businesses can borrow,
borrow, and borrow some more, which is fueling the student debt bubble, this
consumer debt bubble, and this corporate debt bubble. When the WeWork IPO drama
happened back in September-October of 2019, WeWork's valuation went from 47
billion dollars all the way down to 8 billion dollars in like a month. The only
reason that's possible is because we have so much cheap, fake money out there.
Cheap debt can be really effective when you're trying to encourage people to
spend and stimulate an economy when you're in a recession. But when you're in
one of the strongest economies of all time, all this cheap debt is creating a
debt bubble, and if this bubble bursts, it's not going to be good. That's why I'm keeping
a close eye on what's happening around me, and that's why I created the free
Minority Mindset Newsletter where we first break down the top finance and
business news, and then we show you how this news affects your wallet, this way
you can be money smart. This newsletter is completely free, and you can subscribe
to our finance and business newsletter by clicking the link
up here, or by clicking the link in the description below. Fourth: I'm investing—
in me. The stock market and real estate market both got sliced in half after the
2008 crash, and anybody who had money were able to come in and make a killing,
even if they didn't know what they were doing. But the investors that did know
what they were doing were able to come in and build massive fortunes, which is
why they say more millionaires are made during recessions than during any other
time. Now, to be fair, nobody knows how big the next recession will be, when it will
happen, or what will cause it. But, what we do know is that the economy moves in
cycles, and that people who have cash can come in and scoop up these investments
when they go on sale. The tricky thing is that right now investment prices are sky
high, and at the same time, savings accounts are paying you next to nothing,
so you're sitting between a rock and a hard place, because if you invest your
money, you risk losing it because you bought at a peak right before it came
down, or if you save your money, then you're sitting there watching your money
lose value to inflation. That's why I'm doing three things: first I've moved my
savings to an online bank account, because my online bank account has paid
me many many times more than what my traditional bank account was paying me,
and if you want to learn more about who I'm using, I'll link some information for
you in the description below. Second: I'm more focused on growing my
business than I am my investments right now, this way I have more money when
investment prices come down, and third I'm being super picky with the
investments I do make, which brings me to the fifth thing I wanted to talk about:
analyze your investments twice. Waiting around with your arms crossed for the
next recession to happen before you invest any money might mean that you
have to wait for a long, long time, and it could mean that you lose out on a lot of
upside. Investing is how people become wealthy, and investing is how wealthy
people stay wealthy. But, just because investing is good doesn't mean that you
should just blindly throw your money into the market, especially right now.
When investment values are high, it doesn't mean that you shouldn't be
investing, it means that you need to spend more time learning, and more time
analyzing, and more time being pickier with your investments. I'm still looking
for investment deals but, I'm only buying steals,
I'm not buying things the way I was five or six years ago.
If you are a newer investor, this is the perfect time for you to try a short-term
strategy, like the growth stock strategy, you might have heard me talk about, or real
estate wholesaling, this way you can learn the way that investing works, and
you can do this without taking on a whole bunch of risk, and you can do this
without tying up your money in the market for a long time. You're doing
something and trying to flip it within a shorter amount of time, this way you can
see how the process works, and if you want to learn more about real estate
wholesaling, you can read a free ebook by a partner on real estate wholesaling, and
I'll link it for you in the description below. Now, I want to hear your thoughts;
what are you doing with your money right now? Let me know in the comments below.
Thank you for watching, if you enjoyed this video, share it with one friend, and if
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always, KEEP HUSTLIN' *