Can One Get Rich or At least Not go Broke During a Recession?

[Davidvictorson]

Recession is coming and we know it. In some places it is staring us right in the face. Unemployment, rising cost of living, increasing food prices, falling stocks etc are some of the negative effects associated with recession. Despite this seemingly bad news, Warren Buffet said “In short, bad news is an investor’s best friend”. And another quote by someone goes thus "millionaires are made during a recession". I have been recently laid-off work due to the recent economic crisis in my country. I do not want to see this as a bad thing. So I ask what hidden opportunities does this recession offer? How can one take opportunity of the recession to become rich or at least not go broke?

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[jackg]

There's probably a lot more examples than what I've mentioned below but it's a gist of what to expect.

If you don't have a strong income straam you might see problems facing day to day expenses and then won't be able to harness all a recession has to offer...

And with that out of the way, recessions normally pose good opportunities for those with cash and liquidity. Good debt gets valued like it's toxic, good companies get valued like they're only going to survive 6-10 years (in some places), gold and other things considered stable go into bull markets - if you buy wheat and it drops in value - you've still got food. Bad news causes panic in markets, more panic than is necessary - you can make a decent amount by buying crashes and selling them back to the market when the price appreciates (but manage your risk with this one). The federal reserve released stress test documentation too which seems to either have been influencing the market or an accurate prediction (if you're interested in forex in any way particularly).


These are risky ideas that should be originally tested with no more than you'd be happy losing down a grid - if you make profits, reinvest those instead of expanding too much and getting carried away. Placing high orders might affect how others trade or the price you buy at and that could invalidate what you're doing or make it harder.

[Casdinyard]

Recession is coming and we know it. In some places it is staring us right in the face. Unemployment, rising cost of living, increasing food prices, falling stocks etc are some of the negative effects associated with recession. Despite this seemingly bad news, Warren Buffet said “In short, bad news is an investor’s best friend”. And another quote by someone goes thus "millionaires are made during a recession". I have been recently laid-off work due to the recent economic crisis in my country. I do not want to see this as a bad thing. So I ask what hidden opportunities does this recession offer? How can one take opportunity of the recession to become rich or at least not go broke?

The fact you said that you just recently got laid off, you could face problems with your regular day-to-day expenditure like utilities and essentials just like what the others have said here. If you could find a way to solve that dilemma, and at the same time have enough to invest on assets that are not affected by recession, you are indeed safe. Thing is the statement made by Warren Buffet exclusively works for people who could afford to invest on something. If you couldn't you're in deep crap.

[DVlog]

Recession is coming and we know it. In some places it is staring us right in the face. Unemployment, rising cost of living, increasing food prices, falling stocks etc are some of the negative effects associated with recession. Despite this seemingly bad news, Warren Buffet said “In short, bad news is an investor’s best friend”. And another quote by someone goes thus "millionaires are made during a recession". I have been recently laid-off work due to the recent economic crisis in my country. I do not want to see this as a bad thing. So I ask what hidden opportunities does this recession offer? How can one take opportunity of the recession to become rich or at least not go broke?

In a recession, people are forced to sell their assets to bear their expenses. Warren Buffet talks about these opportunities. When people are selling you will buy and when people are buying you will sell. Rich people follow these simple rules. Now do not ask me where did you get the money. These are the skills most people do not have. You can buy and sell millions of dollars of properties without having money in your pocket. Human minds are very unique so use them.

[Zaguru12]

I do not want to see this as a bad thing. So I ask what hidden opportunities does this recession offer? How can one take opportunity of the recession to become rich or at least not go broke?

There are many opportunities to grow rich during recession although this opportunities are patronised by rich fellows who could not get hit even if it fails. But for the average man, it is a situation where you need a plan that just has to work. The safest I would suggest is Agriculture holding. One needs to study his environment and past recessions to know what is mostly needed during downturn. Agricultural holding reduces risk if planed well.

As for not going broke during the period my suggestion would be one needs to plan ahead by possibly increasing its emergency savings since warnings of the downturn is always given before it arrives. The savings could help during the recession period when some things don't go as planed

[gantez]

I have been recently laid-off work due to the recent economic crisis in my country.

Sorry for this. This difficult economy is getting companies to minimize cost and to do that is to put some machines out or make one person to control more work and underpaid, this is bad.

 I do not want to see this as a bad thing.

It is not a bad thing. They say it that when one door is closed, it will open another opportunity to open another door. So get up and dust up from the memory. Learning a skill is another opportunity.

So I ask what hidden opportunities does this recession offer? How can one take opportunity of the recession to become rich or at least not go broke?

The reason that rich people get rich more in recession is they have the capital to buy up properties and other things from the people that have financial problem because of the recession. The things are sold cheaper than real market price in a robust economy. The hidden opportunity is if you can buy or invest in recession that is cheaper. Buying gold, commodities are cheaper that you can hodl longer until economy recover so you can sell but doing the buying in recession is difficult because money is not that flowing or easy.

[bitmover]

. So I ask what hidden opportunities does this recession offer? How can one take opportunity of the recession to become rich or at least not go broke?

Do you have a job? Do you have any income?
If you do, and you have some savings, a recession is much better than a bull market to make money. You will be able to buy cheap stocks and bonds (and crypto) and in a few years your stash will be much bigger than it would if we were in a bull market right now.

Take a look at this article
https://www.mrmoneymustache.com/2022/05/20/2022-stock-market-crash/

If you don't have a job now, there are also opportunities now. There are many options to try for a remote job, study in the internet and so on.

[Smartvirus]

Despite this seemingly bad news, Warren Buffet said “In short, bad news is an investor’s best friend”. And another quote by someone goes thus "millionaires are made during a recession".

We live head lives because the world is never fair. Particularly, the poor and the weak. Most gets preyed on and very few gets help but, the once that are able to provide needed or scares services always enjoys it all.
I won't say it's not possible for some people to go broke or run out of there means of livelihood because, its an expectation but, we would always survive. Its the way it is for man, no matter the situation, human beings would always fined a way to see it through and to the end.

Haven't been aware of the forth coming inevitable situation, one must be prepared by looking for means to provide what would be lacking, not just for his or herself but for the masses thay would need those and enrich themselves.

Covid-19 made nose mask, hand sanitizer and pharmaceutical firms rich, people who sell food items as well. So will the inflation create demand for certain products as well and as an investor or one who hopes not to get caught in between, its time to think.

[Fortify]

Recession is coming and we know it. In some places it is staring us right in the face. Unemployment, rising cost of living, increasing food prices, falling stocks etc are some of the negative effects associated with recession. Despite this seemingly bad news, Warren Buffet said “In short, bad news is an investor’s best friend”. And another quote by someone goes thus "millionaires are made during a recession". I have been recently laid-off work due to the recent economic crisis in my country. I do not want to see this as a bad thing. So I ask what hidden opportunities does this recession offer? How can one take opportunity of the recession to become rich or at least not go broke?

Recessions can be huge sources of opportunity for people who are able to retain a job and keep their income going steady. You're able to pick up company stocks at much depressed prices which are likely to bounce back as the country moves out of recession and provide a solid income into the future. However that can be easier said than done, because typically companies are also looking to cut back heavily throughout this time and the highest earners can sometimes be a target of redundancy first. Other companies might simply be badly placed and end up going under, which leaves you in the job hunting market at the most inopportune time when you want to be investing.

[romero121]

Recession won't bring opportunity, but it lets people identify their ability as well as find a way to survive. This might not happen with most people, but the one who were striving to be an entrepreneur or get out of his routine will take it as the time to study the market and succeed out of it. Even here failures will happen.

I experienced it during the lockdown of covid-19. Lot of tech people who got fired from their jobs came up with their own plans and this was just for their survival and now those have turned to be million dollar businesses.

[Rruchi man]

How can one take opportunity of the recession to become rich or at least not go broke?

Stop being only a consumer as remaining a consumer alone is one of the surest ways to ensure that you are at the receiving end of the effect of the recession. I don't know how much money you have, but if you are good in business, now can be a good time to consider starting one that is carefully thought out which renders important services or provides essential commodities.

Healthcare, food, consumer staples, and basic transportation are examples of relatively inelastic industries that can perform well in recessions. They may also benefit from being considered essential industries during a public health emergency like the COVID-19 pandemic.

source

[Cryptomultiplier]

The fact recession still bites hard, doesn't mean the rich dont get any richer nor the poor any poorer. I believe being rich is as a result of careful dedication and prior preparation.
For one to not go broke in a time like this, it is of paramount importance to first and furmost have a source or two of income, no matter how meager it may be.
Also, save more where possible and spend less, consume less, try new alternatives for meals and outings, just try to do whatever you would have done lavishly, less and less lavish.
The opportunities abound where one is able to find a cheap and lasting solution to any one problem during these recession time.

[gantez]

I experienced it during the lockdown of covid-19. Lot of tech people who got fired from their jobs came up with their own plans and this was just for their survival and now those have turned to be million dollar businesses.

Yes hard times are really the time for innovation and creation ability to come up. If you get push to the wall, it will make you stronger and you bounce back better. You are correct during the covid-19 many individuals has to feed to through online and making different content. There is a business of comedy I think has developed and find it way online by making people to laugh, it develop the time of covid-19 many youth find their comedy talent and they started to make comedy skit, they post it on Snapchat, Snapchat, YouTube and some in Facebook. This is helpful to the youth and the economy also.

[arwin100]

Recession is coming and we know it. In some places it is staring us right in the face. Unemployment, rising cost of living, increasing food prices, falling stocks etc are some of the negative effects associated with recession. Despite this seemingly bad news, Warren Buffet said “In short, bad news is an investor’s best friend”. And another quote by someone goes thus "millionaires are made during a recession". I have been recently laid-off work due to the recent economic crisis in my country. I do not want to see this as a bad thing. So I ask what hidden opportunities does this recession offer? How can one take opportunity of the recession to become rich or at least not go broke?

Yes if there business or income flow come from importation which heavily rely on USD or they are affected to much on covid 19 effects. This could happen and current recession should be taken seriously by each investor since this could hurt them badly and if they don't have back up plans towards this for sure what mentioned by you on this thread will happen. Also government should have plan to help the investors so that they cannot feel a heavy damage towards the global crisis happening.

[odunybiz]

Recession is coming and we know it. In some places it is staring us right in the face. Unemployment, rising cost of living, increasing food prices, falling stocks etc are some of the negative effects associated with recession. Despite this seemingly bad news, Warren Buffet said “In short, bad news is an investor’s best friend”. And another quote by someone goes thus "millionaires are made during a recession". I have been recently laid-off work due to the recent economic crisis in my country. I do not want to see this as a bad thing. So I ask what hidden opportunities does this recession offer? How can one take opportunity of the recession to become rich or at least not go broke?

Every situation in life is an advantage to some people. Some people will definitely make their great fortune during this recession. The nature of the business you do will determine if you will be broke during recession or not. Investing into food and agriculture may be a way out of being broke during recession as no one can do without food.

[dothebeats]

You can make money if you have cash, but without it then you're better off working to make ends meet. During these times, necessities will be highly priced, and to be able to make something out of it you can buy wholesale items and sell it somewhere with some markups. It will be understable given how everyone is scrambling for goods and not everyone can buy wholesale anyway. It may be unethical at best but it's still better than trying to trick people out of their savings.

[darkangel11]

The quote OP is talking about doesn't mean you'll become rich in a recession. It's an opportunity to stack up for another couple years. We don';t know how long this will last. For all we know it could end next month if Russia decides to stop the war and sanctions are lifted. It could also end when the FED stops this circus with rates. We all know they're fighting a lost cause and will either have to pivot or crash the market. In both cases they've lost.

I've been buying bitcoin since Spring when we went to 30k and I'm planning to continue if we fall to 18k again. I don't care at what level we are, I'm buying everything sub 20k and if I run out of money I'll DCA using my earnings.

[boyptc]

Recession is coming and we know it. In some places it is staring us right in the face. Unemployment, rising cost of living, increasing food prices, falling stocks etc are some of the negative effects associated with recession. Despite this seemingly bad news, Warren Buffet said “In short, bad news is an investor’s best friend”. And another quote by someone goes thus "millionaires are made during a recession". I have been recently laid-off work due to the recent economic crisis in my country. I do not want to see this as a bad thing. So I ask what hidden opportunities does this recession offer? How can one take opportunity of the recession to become rich or at least not go broke?

If listening to those successful investors, it only means that you buy all of those cheap stocks that you see. And as we're in the crypto market, buy those cheap cryptos that you're seeing today.

They're cash ready and if you've got some cash ready to be made for investments, you should do it during the recession or the most common status to us which is the bear market.

And if you don't want to get broke, just do the typical financial advise like spending and living frugally.

[EdenHazard]

Recessions is the great way to buy cheap stocks , they say ...
It is the great opportunity to become rich to buy undervalued crypto , they say ...
The property price went down at its lowest and you can take that opportunity to have a long term investment , they say ...

But what if after you bought the stocks at the cheapest possibility , bought crypto and the properties but then all of sudden everything went worse ? The price dropped even lower. Huhh?

[Hydrogen]

How can one take opportunity of the recession to become rich or at least not go broke?

The shifting nature of supply chains and economies, creates opportunities. Thanks to shifting demand and need.

Gasoline prices rise. People seek alternatives. Having a good alternative product in stock can be a million dollar opportunity. Transportation options like electric scooters might be in high demand at the moment for city regions. Accessories like trailers that can be pulled by electric scooters to haul cargo might also be in demand. Mopeds with engine sizes 50cc and smaller need no insurance, which could put them in high demand on the fossil fuel side of things as people seek alternatives to cut monthly costs.

Food prices rise. People seek alternatives. Someone with extra field space and time might plant crops to sell locally at higher than normal market prices. There are people who buy a $5 pack of carrot seeds to grow carrots which they might sell for $50 to $100 for a 10x to 20x profit. Food prices being what they are now, margins are higher due to prices being elevated.

Disposable income is on a decline, which can make it harder to attain profitability. The target demographic of consumers is narrowed and swings in favor of higher income bracket.

I think most can guess in which directions markets and demand are headed. It might be profitable to stay one step ahead of the current crisis.