The data suggests a recession is coming
and I made over one million dollars last time.
So let's talk about how you could win
while others are losing.
Hi, guys.
It's Mark.
So a recession is inevitable,
which means people will face financial trouble,
possibly lose their jobs,
and maybe even their homes, as well.
But this doesn't have to be you.
If you make the right decisions now,
then a recession will be a golden opportunity
to make more money than you've ever imagined.
After all, it's coming, so you may as well profit from it.
So in this video, I'm gonna share the blueprint
I used to make millions of dollars
in the last big recession, and as you could probably tell
from my hair color, I've lived through two major recessions,
so I'm experienced when it comes to this topic.
But hold your horses.
Before we can get into how you can beat a recession,
we first need to talk about what a recession actually is.
Recently the economy has been booming.
Products have been selling faster than ever,
and companies have been growing at breakneck speeds.
But at the same time, the world is unstable
and things are beginning to unravel.
A recession is measured by GDP,
which stands for gross domestic product.
Now this might sound boring,
but it's the total amount of all value created
in an economy.
If you were to buy this RC car from me,
for example, this would actually contribute
towards the GDP.
Now, if this goes down for more than six months,
we're officially in a recession.
By the way, if you wanna buy this car, let me know.
Before the last big recession in 2008,
I spotted the signs early on
and I knew there was a prize waiting for me,
as long as I could complete the three challenges
that stood in my way.
Nowadays, this mission remains the same
and you can set yourself up
for the same success by following my strategy,
no matter who you are.
The first challenge was the stock market.
I needed to figure out how to outsmart it,
and this still just as important
for you to focus on today.
Stocks are one of the easiest things
to start investing in, as it requires
very little time and effort to get started,
and the upside potential is huge.
No one tells you this as school,
but if you have an average salary
and invest 10% of it correctly each month,
then you're almost guaranteed to become a millionaire.
So is now the right time to buy stocks,
or is it best to wait,
considering the uncertain times ahead?
Well, the sad thing is, when it comes to investing,
most people don't even get started,
as they see the stock market
as a place for the rich to get richer
and too complicated for the everyday person.
Unfortunately, of the few that do pluck up the courage
to start investing, most only do so
when everything's booming and lose interest,
or worse, sell their stocks as soon as things take a turn
for the worse.
This just leaves them trying to time the market
for the best possible reentry point,
which probably isn't gonna come anytime soon.
So as much as the stock market is about strategy,
it's also about psychology.
A dip is technically the best entry point,
but the hardest to get excited about.
I get that investing your money every month,
and then watching the prices go down is so demoralizing.
It just feels like you're burning money and getting nowhere.
But it's all about thinking long-term.
Lemme take you back to 2008.
The business I started from scratch was gaining
some real traction and I was enjoying providing a nice life
for my wife and ten-year-old son.
Now, when I say nice life, I could've been going crazy
and letting the money go to my head.
My accountant once said, "With the amount of income
"you have, Mark, you could be living like a king,
"but instead you live like a church mouse."
But that was all part of the plan.
I knew that a recession would come
and that a market crash would
also be right around the corner.
I saw, firsthand, when my dad was impacted
by a recession in the 1970s
and I didn't want the same for me and my family.
So all while my business was booming,
my products flying off the shelves,
and my income looking like it would never end,
I was saving up my money, ready to deploy.
Most people couldn't understand this
and many of my friends were saying
I should invest in this stock
because it was the next big thing.
Honestly, every week it felt like
there was another next big stock
that was just ready to go to the moon.
You might've heard the saying,
"Cash is trash," and for the most part, I agree.
But not during a recession.
Don't get me wrong.
I was investing, but I wasn't being drawn into the hype.
This was extremely hard,
but in the long-term proved to be the direct decision.
I'm not claiming to be a financial fortune teller,
but I do know a thing or two.
The US stock market has always recovered after a crash,
and declining stocks doesn't necessarily mean a recession is
inbound, and is recession doesn't
always mean a crash in the stock market.
So knowing all these things,
it wasn't smart for me to sell my stocks
when the recession hit,
but it was a good opportunity to buy some more.
I dub the strategy I use the 90/10 formula.
Very original, I know, but it's something
you can also do today.
The 90 refers to 90% of my stock market budget
that I allocated to index funds and ETFs.
These require very little thought
as they spread my money between multiple different companies
without me having to lift a single finger.
The ten refers to the remaining 10%
of my stock market budget that
I allocated to more risky long-term plays,
like investing in small, undervalued companies.
If there's one thing that I know,
it's that the stock market can
only trade at an unrealistic price for so long,
be that high or low, meaning that,
if the stock is undervalued,
it will eventually rise to its true value.
But the same rule applies for overvalued stocks.
This is why I limit this kind of investing
to 10%, as even with my fundamental analysis,
which is essentially checking the balance sheets
and cash flow statements of a company,
I can't be right 100% of the time.
But at the end of the day,
with smaller individual stocks,
the upside potential is so huge,
you don't even need to risk more than 10% of your money.
The main message here is not to sell
and keep investing, if anything,
more aggressively than before.
I mean would you hold back when
all your favorite items were selling
at bargain prices?
Of course you wouldn't.
So why is it any different when the stock market is on sale?
If you wanna start investing,
then it's great to get your journey kickstarted
with a free stock from public.com worth
between three and a thousand dollars,
if you're in the USA.
I'll leave a link down below if you'd like to pick that up.
Just remember, with investing,
your capital is at risk.
But let's address the elephant in the room.
I know that most people want it all now
and they don't care about investing
for the long-term, to eventually retire a millionaire.
Guess what.
I agree.
There's no better way to get rich than fast.
However, there's nothing stopping you investing
in your future while getting rich now.
Now that we've smashed through the investment wall,
we're faced with the next big challenge,
getting rich fast through business.
When I say the word "business",
lots of people think it sounds like too much work.
I'm not here to tell you it's easy,
but when 47% of millionaires are business owners,
it's clear that this is a way you can become rich fast,
and I should know because I've done it.
Nowadays you don't even have to commit
to starting a full-fledged business
when there are so many opportunities waiting
for you online.
These are commonly known as side hustles.
This is just a fancy way to say a small business,
typically run as a side project
in your spare time while still working a normal job.
This gives you stability and also huge income potential.
Something I do in my spare time is invest in crypto.
However, it's really important to find an app
that offers the best prices.
Recently I've been using the FTX app,
as it lets you trade crypto with up to 85% lower fees
than the top competitors with no withdrawal fees.
They're also giving you free crypto
on every trade over $10 when you use
my code, MARKTILBURY, with the link in the description.
They're a brand that I really trust.
Just remember, with investing, your capital is at risk.
The truth is that, during a recession,
those that have planned and saved money,
like you have, hold far more power.
I first noticed this when I was in China,
finding products to sell in my UK stores.
As soon as the economic situation changed,
I had far more negotiation power
to buy in smaller quantities at discounted prices.
The conversation quickly shifted from how many containers
do you want to how can we help you fill a container?
I'm aware that you're probably
not in China, sourcing products,
but the lesson is still the same.
During a recession, your negotiation power
goes through the roof.
For every business or side hustle,
you have suppliers, so this is a great opportunity
to renegotiate your prices and increase your margin.
Now, a margin is essentially the difference
between what you pay for a product
and what you sell it for.
It's your profit.
Another way to create more margin is
to increase your prices.
I used my design skills to design
this model aircraft, and this stood
out from the competition.
That allowed me to charge more money
and earn more profit.
The one thing I say to anyone
who starts a business or side hustle
is that it's easy to give products away,
but it takes skill to run a profitable operation.
So if you can decrease your costs
while increasing your prices,
then you're really killing it.
After obliterating the business barrier,
it's easy to sit back and think that you're done.
However, the real estate challenge still has to be cracked.
Once you've managed to break
through the first two challenges
like I did, then the chances are
that you'll be in a very good financial position.
At this point, one of the best things
you could possibly do is invest in real estate.
I always hear people say it's too hard
to find good deals, which is true most of the time,
but sadly not in a recession.
I mean just take this experience, for example.
One day I was driving around the industrial estate,
where my warehouses are based,
you know, doing donuts and (screeches) handbrake turns.
- [Son] No you weren't, Dad.
- All right, all right.
I was just having a bit of fun.
Let's go back to the real story.
I saw the abandoned unit at the end of the estate
had his door open, which was a rare sight.
No one was ever in that building.
Being the nosy guy that I am,
I wandered along to check it out.
My initial thought was that someone had broken
into the property, so I put my superhero pants on
and cape and went to sort out the problem.
- [Son] In your dreams, Dad.
- Yeah, all right.
When I stepped into the warehouse,
I was greeted by the sight of a disheveled man
surrounded by paperwork.
We got talking and it turned out he owned the property.
After chatting with him for a while,
I uncovered that he was in a bit of a financial state
and needed to sell his warehouse as soon as possible.
It was worth around $300,000 at the time,
so I offered him a cool $150,000
with the agreement that I'd pay him full
within the week.
He obviously said no.
In fact, he laughed me out of the building.
Fast-forward a couple of days
and he was at my door, shaking my hand,
and we had a done deal.
This isn't an isolated incident.
This type of thing happens all the time during recessions
and you don't always need 150,000 up-front.
But of course it does help.
To show you how powerful money is,
when I bought this house, there were six people offering
more money than I was,
but I got the deal because I could offer the cash
a lot faster than anyone else,
and that's enabled me to nearly finish the north wing.
A recession does two very important things.
First, it puts pressure on the sellers,
as they might have lost their jobs
or had their incomes slashed.
This means that they could be finding it harder
to meet their mortgage payments
and are being forced to sell.
Second, it cuts down the amount of buyers,
as most people didn't prepare like you did,
and therefore have no money
and a weak credit score.
These two things together flip the market
from a seller's market to a buyer's market.
If you could fine a property off-market,
like I did, then that's even better,
as you're able to cut out the agent fees
and also have less competition.
Even if you don't have money during these times,
you can still make a profit
from deal-sourcing, and even flipping houses
with an investor.
The absolute best time to buy is when
everything is discounted
so you could build equity during a boom,
smash that wall down, and enjoy the profits.
So I'm gonna leave the next video right up there,
but don't click on it just yet.
Make sure to subscribe if you wanna grow your wealth.
Okay, I'll see you over there.