Making Money in the Coming Recession - Eddy Gifford #5569

Published: July 28, 2022, noon

Summary: With inflation, the war in Ukraine, and supply chain disruptions, the most pressing problems in the nation right now are clear. To get some perspective on solutions, I talk to Eddy Gifford\u2014whose job as a wealth advisor is to critically think through these problems and help others subsequently implement investing strategies. Interacting with the market during inflationary, uncertain times requires identifying what type of market we\u2019re in and thinking through all of the possible outcomes. This is what Eddy refers to as being proactive with investing methodology, and you can learn more about it during this episode. Highlights: -Eddy Gifford is a wealth advisor who is also into alternative investments -Cryptos have gotten slammed\u2014Bitcoin is down two thirds and could go lower -The one alternative investment holding on so far is real estate, but it has an inverse relationship with interest rates. Property costs have doubled -When you\u2019re dealing with something like cryptocurrency, it\u2019s not a buy and hold situation -Traditional diversification doesn\u2019t work in bear markets\u2014it\u2019s more about diversification of strategy. We need to be proactive with our methodology\u2014analyzing why one would buy or sell something -It\u2019s important to pinpoint what your mass loss is -So how do you approach the market? First, you should identify whether the market is a bull market or bear market and the appropriate strategies based on which one you\u2019re dealing with -Once you own, have targets in place -Buying everything for the sake of buying everything is not a recipe for success -Just because we\u2019re going to be positive over the next few months does not mean this is indicative of recovery -We could end up in a situation where some of the big names have poor earnings\\ -It\u2019s okay to have some cash on the sideline right now\u2014it\u2019s not a bad thing to be sitting in cash when the market is down -If you\u2019re going to go all in, it\u2019s good to have some sort of hedge in place -Commodities are more volatile in general than the stock market as a whole -The inflation we\u2019re dealing with now is a three headed monster\u2014some of these things can\u2019t be fixed with interest rates -A word of advice - focus on what you control. Focus on paying off credit cards to reduce debt, plan your day to be efficient with fuel/time, Useful Links: Financial Survival Network Tactive - Eddy Gifford