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How To Profit From The Coming Recession?

GetShitDone

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Dec 20, 2012
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Everyone is talking about the coming recession as we've been in a bull market for 9 years now.

What are the best ways to short or profit from the recession?
 

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Vaughn

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Apr 20, 2017
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According to Buffett, you must be gready when everyone else is fearful. That would mean go into cash and wait for the crash. Then start buying what others need to sell.

In practice that's of course a little more complicated, because you never now where the bottom is. However, I will try this approach, for stocks and also for real estate. I hope for some good foreclosure sales in my hometown.


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Scott Steffek

New Contributor
Jan 7, 2019
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According to Buffett, you must be gready when everyone else is fearful. That would mean go into cash and wait for the crash. Then start buying what others need to sell.

In practice that's of course a little more complicated, because you never now where the bottom is. However, I will try this approach, for stocks and also for real estate. I hope for some good foreclosure sales in my hometown.


Gesendet von meinem Moto G (4) mit Tapatalk
I sell investors single family homes and small mutli units. Just as a word of warning, the market is very tight right now. Finding a foreclosure at a good price is very difficult right now. Almost any "listed" home for sale, is gobbled up very quickly..... IF it's a good deal. There is a lot of work that needs to go into buying a foreclosure or any real estate that you want to buy as an investment. For example: Do you know how to calculate ROI% (return on investment)? How much are the same type of homes selling for in the area? How much work does the house need? Who is going to do the work for you? Where will the money come from, to rehab it? Do you have enough cash to pay the holding costs, until the house is sold or rented? Do you have a competent property management company to find a good tenant? I could go on and on. There is a great deal of work that goes along with investing in real estate. I strongly suggest you research the business thoroughly before you even think about buying something. I see or hear of people almost every day, that got burnt buying real estate. It's a serious business and NOT for the novice. Best of luck to you.
 

Vaughn

Contributor
Read Millionaire Fastlane
Apr 20, 2017
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Switzerland
I sell investors single family homes and small mutli units. Just as a word of warning, the market is very tight right now. Finding a foreclosure at a good price is very difficult right now. Almost any "listed" home for sale, is gobbled up very quickly..... IF it's a good deal. There is a lot of work that needs to go into buying a foreclosure or any real estate that you want to buy as an investment. For example: Do you know how to calculate ROI% (return on investment)? How much are the same type of homes selling for in the area? How much work does the house need? Who is going to do the work for you? Where will the money come from, to rehab it? Do you have enough cash to pay the holding costs, until the house is sold or rented? Do you have a competent property management company to find a good tenant? I could go on and on. There is a great deal of work that goes along with investing in real estate. I strongly suggest you research the business thoroughly before you even think about buying something. I see or hear of people almost every day, that got burnt buying real estate. It's a serious business and NOT for the novice. Best of luck to you.
Thanks for your words.
Just to avoid misunderstandings: I don't plan to buy and resell, but to buy and rent out. And I won't do it in the current market, cause you're absolutely right about the difficult market. However, my home town is a great place to buy especially small apartments, cause it has a university and a ratio of 1 student on 6 inhabitants.
I did and still do a lot of research on the topic (and it's truly a business with a lot of pitfalls). But I'm confident and waiting for my chance.
 

Scott Steffek

New Contributor
Jan 7, 2019
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Thanks for your words.
Just to avoid misunderstandings: I don't plan to buy and resell, but to buy and rent out. And I won't do it in the current market, cause you're absolutely right about the difficult market. However, my home town is a great place to buy especially small apartments, cause it has a university and a ratio of 1 student on 6 inhabitants.
I did and still do a lot of research on the topic (and it's truly a business with a lot of pitfalls). But I'm confident and waiting for my chance.
Rentals can be excellent money makers. Try to find what's called "pocket listings". These are properties or apartments that are NOT listed on what's called the MLS (multiple listing service). Word of mouth about a "tired" landlord works or we buy houses signs work too. There's many different ways to find off market properties. I noticed you mentioned college students. That can be an excellent market or you can lose your.... you know what. I always tell my investors that you can buy the best deal on the face of the Earth. But if you have lousy property management, you have nothing. If you have to evict a tenant or they tear your house up or if they don't pay, it can be devastating to your bank account. Remember too, that you might have to deal with an apartment being vacant for the summer months, because they're college kids. So it's possible you might not have any income every summer. That definitely hurts the bank account. Try to find kids that will rent all year. That shouldn't be that difficult. Again, best of luck.
 

minivanman

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Write a self help book titled "How to Profit From the Coming Recession"
And don't forget about a self help book for the other side. What to do when you or your spouse loses a job in a recession. With an upgrade of, how to raise my kids in a recession and how to care for my dog during a recession.

I'm not joking, I bet you will make money.
 

D_Benga

New Contributor
Jan 7, 2019
21
7
12
East Coast
Everyone is talking about the coming recession as we've been in a bull market for 9 years now.

What are the best ways to short or profit from the recession?
Try to have as much cash as possible on hand. If/once the recession hits, I would try and buy up low priced properties (with minor fixes needed) and hold on and resell once the market is back up. It would be best if you could avoid loans as that would cause you to have monthly payments. Making payments would be hard as you never know how long the market will be down. Paying cash for properties would be ideal.
 
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OP
GetShitDone

GetShitDone

Bronze Contributor
Dec 20, 2012
299
239
121
Vancouver, Sydney, London
Try to have as much cash as possible on hand. If/once the recession hits, I would try and buy up low priced properties (with minor fixes needed) and hold on and resell once the market is back up. It would be best if you could avoid loans as that would cause you to have monthly payments. Making payments would be hard as you never know how long the market will be down. Paying cash for properties would be ideal.
Any reason why you would only buy properties with cash? What about other assets like stocks, crypto, bonds, etc?

I imagine your purchasing power would be very big too during a recession with lots of cash.

Agreed that having as much cash as possible is best. Cash is king in this scenario it seems.

I own farm land which seems to do positively during a recession, so I won't sell it right now.

Only other place I can find cash is selling my Crypto (which is expected to be a bull market in 2020 coincidentally during the recession).

Seems selling products that focus on a recession is smart as mentioned above too..
 

LuckyPup

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I dunno, but if it's as bad as many fear lotsa folks will be underwater with loans, credit, mortgages, etc. Start a debt restructuring or loan consolidation service. Maybe a tax reduction service. Just spitballin'.
 

D_Benga

New Contributor
Jan 7, 2019
21
7
12
East Coast
Any reason why you would only buy properties with cash? What about other assets like stocks, crypto, bonds, etc?

I imagine your purchasing power would be very big too during a recession with lots of cash.

Agreed that having as much cash as possible is best. Cash is king in this scenario it seems.

I own farm land which seems to do positively during a recession, so I won't sell it right now.

Only other place I can find cash is selling my Crypto (which is expected to be a bull market in 2020 coincidentally during the recession).

Seems selling products that focus on a recession is smart as mentioned above too..
The reason I recommend paying cash is so you can avoid being stuck making payments(interest) in case the market is down longer than expected. Might be good to sell Crypto during the recession as one would expect it to increase in value during the recession.
 

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Amro

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Oct 5, 2018
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Hi,

Write an ebook about How to survive and thrive through the recession crash of 2020 or 2021. You can always alter the year. :)

All the best,
Amro
 

LuckyPup

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Hi,

Write an ebook about How to survive and thrive through the recession crash of 2020 or 2021. You can always alter the year. :)

All the best,
Amro
Another common book tactic is to write the exact opposite of what a the prevailing wisdom espouses. In this example, "Why 2020 Will Be the Biggest Boom in History (and How YOU Can Profit From It)"
 

harry wilson

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Tech is always first to go

People are more likely and confident enough to invest in riskier places when confidence is high IE, crypto currency and divert to safer places in a downturn

And when the market drops its the first to go

I have a theory that the following can be a good guide in order of what drops first in a downturn and what rises the most in an upturn

Risky assets ie crypto
Then tech
Then general stock market
Then real estate

So a theory I have, is once real estate drops and levels, thats a strong indicator that only better things are to come.

Another place I used this was recently we had people investing in crypto and tech was rocketing, as soon as Apple passed 1T marketcap that was enough for me to realize ok this definitely could be a big opportunity for downward plays and anything higher is just unreasonable as Apple products have been falling in popularity also with their lstest releases IMO.
 

LuckyPup

Done Dicking Around
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Tech is always first to go

People are more likely and confident enough to invest in riskier places when confidence is high IE, crypto currency and divert to safer places in a downturn

And when the market drops its the first to go

I have a theory that the following can be a good guide in order of what drops first in a downturn and what rises the most in an upturn

Risky assets ie crypto
Then tech
Then general stock market
Then real estate

So a theory I have, is once real estate drops and levels, thats a strong indicator that only better things are to come.

Another place I used this was recently we had people investing in crypto and tech was rocketing, as soon as Apple passed 1T marketcap that was enough for me to realize ok this definitely could be a big opportunity for downward plays and anything higher is just unreasonable as Apple products have been falling in popularity also with their lstest releases IMO.
Interesting, but anecdotal. Do the historical data support your theory?
 

Ecom man

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Honestly there will always be a recession around the corner... the problem is you don’t know which corner!

To say that I will pull out of x because of the coming recession means you know when the best time to pull out is. Almost every single expert agreed that if Trump was elected the economy would tank, stocks would plummet etc. So being a wise investor you pulled your money out of the markets the day before the election so as not to risk your money in the upcoming recession. You missed approximately a 40% return to date(basic math forgive me doesn’t include dividends etc.)

I too believe a recession is coming but to say pull everything out now and sit on cash for the coming recession so you can buy buy buy is difficult if not impossible to do simply because the impossibility or prediction.

As it currently sits the Dow would have to drop 30% to be back to where it was on Election Day 2016 when everyone said it would plummet. If all the experts can be so wrong how can you and I predict when the coming recession is with any accuracy so we can get liquid before it?
 

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