A Recession Is Good For The Economy
"No It Ain't" is what my wife wrote next to this title in my notes on my phone. Now my question to you is, is she right or is she wrong? Because as close minded as she is, a lot of people think like she does. How could a recession be good for the economy? Again I will say we don't call this newsletter "MASIve Thoughts" because it has my last name in it. We call it that because you really have to think large in order to solve big world problems.
The Economy
The economy fluctuates. The dictionary definition of it is: the wealth and resources of a country or region, especially in terms of production and consumption of goods and services. Here is the question I want to really ask to jog your mind. When the economy goes to sh*t what are you doing? Read that again and really think about this one. Are you fearful or are you aggressive? Because I can tell you there are people profiting off of economic hardships. No it isn't big pharma, the huge chain of Applebees, or any crazy large tech company that you can imagine. Actually all of the examples above normally suffer during economic hardship.
Do you want to know the people who prosper in economic hardships? Individuals like you and I or small business owners. Take a story from around 2020 when the pandemic was really bad. I have a friend that works in the city for a nice apartment building. He spoke with one of the residents there. Now this man had money prior to the pandemic. But because masks were in short supply, this man hired and found clothing companies (I don't know all of the details) and found a way to make masks for everyday people and hospitals etc... The guy made a killing and shifted his wealth for the better. The point of that story is not to brag or make you feel bad. The point is that the man was rich but now he is very wealthy because of one move made during an economic downturn.
Opportunities
Here is the one problem with the general population. We see problems and we hide in fear of them. Others invest and take action. That is the reason why the 1% are where they are today. Do not believe anyone on the internet when they tell you that you have no control over something. The people of the US have PLENTY of control over everything that happens in this country. The problem is we are too afraid of change to do anything about it. A lot of people profit from economic downturns and they make it look easy. Ever notice during an economic downturn or some kind of shift in the economy, new gurus and new people trying to sell you sh*t come out of the wood work? "Hey I just made $15,000 yesterday on Shopify, now buy my course and I can show you how!" Yea people like that. It is because they capitalized on something, they saw an opportunity and they went for it. (Don't be THAT guy by any stretch).
The Transfer Of Wealth
What the news and most people won't tell you about an economy is that it is a transfer of wealth. Sometimes it is a BIG transfer of wealth. Some companies (large companies) stretch themselves way too thin and have to begin lay offs. They then have less man power and therefore they have less resources to stretch across different projects. This can lead to two things. One, they go bankrupt and can not sustain the amount of business or lifestyle they set for themselves (this leaves the market open for a new Giant or competition of giants to rise up). Second, this creates competition. Another company rises from the ashes to set a principle. FYI: We need the second option in the gaming space. It is becoming dominated by corporations that in the end want money. This is happening in a lot of industries but gaming is the one that is most impactful for me.
If you are sitting here and saying that I am crazy. Then I will refer back to the beginning of the article, what are you doing during an economic downturn? Because the only person you can blame is yourself. If you are not capitalizing in someway then you have nothing to complain about. And no, $15 an hour at McDonalds will not solve the money problem you have. The thing that separates the investor from the consumer is an eye for opportunity. There are people who heard about the inflating gas prices, guess what they bought into, gas stocks. Yup, and those people became very rich or richer.
Investment Opportunities
Open your eyes. Educate yourself. Stop blaming others for your problems. I had to learn this the hard way. When people, the news, social media are pointing you in one direction take a look at the other direction. That other direction is where the wealthy people are going. Now, I do want to say that wealth, money, and being rich is not everything to life. But in general, you don't want to be ignorant your whole life. You want to be educated so therefor you can help make informed decisions for you and your family. Most importantly you can help the next generation stop all of the BS that we are currently dealing with.
We need informed decision makers. Do you know that certain states are in almost a complete drought and the reason why they got there is because we built surfing attractions in the desert? Back to my main point informed decision making... Because no one is going to make good decisions for you. You will have to make them for the good of your future, your children's future, and the future of humanity.