Black Immigrant Daily News
There is a lot of talk about a recession these days.
All this talk has created a lot of panic among investors because they fear losing their hard-earned money in the stock market and other investments.
Before you jump on the “struggle bus” and also start panicking. Let’s get a deeper understanding of what a recession is.
A recession is a significant decline in economic activity that lasts for months or even years. A recession is declared when a nation’s economy experiences negative Gross Domestic Product (GDP) for two consecutive quarters, rising levels of unemployment, falling retail sales and contract measures of income and manufacturing.
According to Forbe’s Maazine recessions are considered an unavoidable part of the business cycle — or the regular cadence of expansion and contraction that occurs in a nation’s economy.
In the simplest terms, a recession is where the economic activity of a country declines for at least six months in a row and sees people losing jobs, fewer people shopping for discretionary items and manufacturing and income declining at the national level.
It’s also critical to point out that when you hear people worrying about a recession, they are really focused on the US. In Jamaica, GDP is increasing in the last quarter. The economy is showing signs of expanding. At least, that’s what the data shows.
Since 1980, there have been five recessions in the US. The most significant recession was in 2008, during the global financial crisis.
A recession can be caused by several factors including high debt, asset price bubbles, unexpected occurrences that create financial disasters, inflation, and technology.
The 2008 Global Financial Crisis was caused by asset price bubbles and high debt, while the 2020 pandemic was caused by an unexpected occurrence (COVID-19) that created financial disasters.
Now, this is what you should ask yourself: am I experiencing a personal recession?
We know the US has technically hit the criteria for a recession, but what’s the status of your net worth?
As an investor, you can experience financial recession if there have been increased job losses, business closures, and total investments declining by more than 60 per cent.
If you are not experiencing all three of these then you are not experiencing a personal recession.
Now, if you connect the dots, that means you should use this moment in time to focus intentionally on building wealth.
Use this time to open that investment account, buy stocks, and buy real estate, because we won’t get many opportunities like this to fast-track how we grow our money.
So let’s make this opportunity a money-making opportunity.
By 2020, the number of millionaires across the world grew from 5.2 million to 56.1 million, with more than one per cent of the global population becoming first-time millionaires. This can be attributed to stock markets and real estate used as key strategies. This goes to show that money can still be made during a global crisis.
Millionaires like Warren Buffett have been using this period to make large acquisitions. In 2022, he purchased three stocks: Activision Blizzard ATVI, Apple AAPL, and Chevron CVX. Purchasing these stocks shows confidence in the company moving forward.
Are you making investment purchases right now or are you sitting on the sidelines hoping for the best?
The road to one million can be achieved by taking advantage of current investment opportunities and pivoting into high-performing investing strategies that work in this type of economy – industries, sectors, exotic strategies, protect your income, and passive income investing strategies.
I want you to realise that even though we may be experiencing an economic recession, your finances are not experiencing a recession.
Use this pivotal moment to make the change to becoming a better investor. You will never get this opportunity again any time soon. Money loves speed so get to implementing a solid investment strategy today.
Keisha Bailey is an experienced Investment Strategist who teaches people how to earn passive income, create wealth and reclaim time & reach financial freedom by investing. Keisha teaches investors how to create highly profitable portfolios so they can build wealth faster. If you are looking to learn how to level up your money, she can be reached at keisha@profitjumpstarter.com.
NewsAmericasNow.com
