Best Investments During a HUGE RECESSION!

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Good day subscribers thank you so much for joining me today i am jeremy this is the financial education channel in today we’re talking about the best investments you can possibly make to make lots and lots of money during a recession now for this example today we’re going to assume that i feel there’s a recession coming which i do not view as you guys know i don’t

Feel like the recession is coming at least in 2017 we’ll see what happens in the future but let’s just assume for a second i was like man i absolutely feel we’re going to go really bad for whatever reason here you know six months from now how would i start prepping up my investments what are the steps i would take how would i how would i change my portfolio so i

Could make maximum amounts of money because a lot of people feel like during a recession everybody just loses money everybody’s money just goes down and down and down they all lose absolutely not there’s so much wealth that’s created out of a recession is absolutely amazing it is absolutely amazing and for this example today this is not just like a whole one to

Three months recession you know we had a couple bad months another bounce-back no this is like a 2008-2009 type recession like bad bad bad like a year plus you know type recession where things are just ugly ugly ugly this is a type of recession that i would maneuver in and out of so this is how i would do it guys hit a thumbs up if you enjoy this let’s get into

It so the number one move i would make as i was short the automaker’s immediately if i felt like you know the big ones coming i was short every single automaker pretty much out there maybe not tough lloyd because i’m a little scared to do tesla but i was for sure do forward i would do gm i would do anybody any automaker i could possibly short i would short them

It doesn’t matter how well run the company is it doesn’t matter anything about the company if a recession comes a big one we’re specifically talking about no one buys freaking new cars look at the sales numbers for cars for 2008-2009 because what a big recession happens what happens is credit dries up and how do most people buy cars on credit so you got people

Losing jobs you think they’re going to blow on buy a new car heck no you think they’re going to be able to you can get a loan if they wanna buy a new car heck no if they had cash saved around you think they’re gonna go out and buy a new car with that cash heck no so i would absolutely short the automakers first and foremost so it’d be the first move i make because

Those stock get absolutely hammered it doesn’t matter what their balance sheets in it doesn’t matter anything about company they’re all going toward unprofitability during a big recession they’re all going to be on hard financial times they will all get absolutely smack in the face 50 plus percent pal so that’s the number one move i would make if i really felt a

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Big recession was coming short the automakers the second move i would make is i was short housing stocks and talking about kb home on the short oh brother that would short any housing stock that’s possibly short lenoir ok once again how do most people buy a house they buy on credit when a huge recession happens credit dries up to nothing no one’s allowed they’re

Loaning money no one’s out there loan money no one wants to buy a new house during a recession now some people were smart during the depths of recession they would actually start buying houses not new houses necessarily but like older houses they can make a lot of money that way but that’s not even an example for this i was just short housing stock question right

Because those stocks you absolutely destroyed during a big recession no one’s out there buying a new house let me build a custom home now heck no all those companies you know their land just sits there for years and years come and tell the recession like it’s over with and then they start building again but in the meantime those stocks get nailed guys so that’s the

Second move i make and both those first ones they both have credit involved with them right car loans you usually buy it on credit a new house you usually do it on all alone so both those are involving credit so that’s the first two moves i make the third move i would make i also have to do with those as well i would buy six months output that are out of the money

On automakers and on housing stocks so i would pick the worst housing stocks out there i would pick the worst of the worst automaker and i would go ahead and buy short to short-term put so basically about six months out and we’ll find them out of the money so meaning the amount is if those stocks drop dramatically the amount of money i can make out of the money

Put for six months from now would be absolutely astronomical we’re talking about hundreds of percent if not thousands of percent on those options so that’s the next move i would make so i could maximize those gains that i would get there and that’s a beautiful way to play i know people that have made that have gone from $100,000 brokerage to millions and millions

Of dollars buying short-term put during the 2009 recession because the stock market was just dropping at drastic rate and they would be able to pick up these out of the money put at such a cheap cheap you know pay five cents form and then also those puts our worth 20 cents 25 cents in and it’s a week later and they made you know fifteen hundred percent profit hurt

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You know three hundred percent profit or a thousand percent profit whatever it is so there’s a lot of money to be made if there’s a huge recession of stock markets in freefall just buying short-term puts and then covering and you’ll sell off those short-term puts to somebody else and oh my goodness it’s ridiculous so the fourth move i would make is i would invest

And basically gld which is a gold etf that tracks the price of gold gold is generally very stable during a recession gold is generally seen as a safe haven during some hard financial times i mean i’ve seen the price of gold grow dramatically 2000 i think with 2010 2011 because there was a lot of fear around the dollar good the dollar collapse all this stuff and

It’s just a very safe place that people feel and i don’t know why people feel it that way i mean i don’t even necessarily feel that way but a lot of people feel like gold is the way to go especially during a hard time so the fact of the matter is i would absolutely by some gld and and just you know hold some money and gld basically number five move i would make

I would cover short positions so specifically or short is in the automaker’s the shorts and housing stocks as soon as soon as i felt there’s any type of turn about to happen as soon as i was felt there was any type of turn that was about to happen i would cover my short position on the automaker’s i would cover my short position on the housing stock reason being

Is i don’t want to be in a position where once the turn starts to happen things go up really freaking fast and when you have a short position you have unlimited losses potentially right that’s all short position work until you cover so as soon as i felt like so things are about to turn i would absolutely cover those immediately even if that meant there’s a month

Two months three months out that maybe those stocks could drop a little further and i could have made even more of a profit more of a game and would still absolutely cover at that position it just wouldn’t be worth it because i’ve seen stocks drops assess low levels and then as soon as the term begins to happen those stocks can go up 100 200% in a snap of fingers

That’s absolutely amazing so i would cover immediately as soon as i felt like the tournament coming step number six the second or last step here i would keep at least 30 percent of my portfolio in cash during the entire recession at least 30 percent of my portfolio in cash reason being is i want to be prepared as soon as the term happens that i have some cash

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Available to make moves to do this do that to buy a thing so during that whole recession 30% of my portfolio is in cash just sitting around during that time number seven i would buy one year out call options on some of the stocks i got hammered the worst during the recession so as soon as i feel like that turns coming i’m covering those positions and then almost

Immediately after that i’m buying one year out call options on some of these stocks that are hammered that are good companies just they got absolutely nailed their stocks i’m talking about stock quite a cabela’s the stock i was invested in started buying it was 2011 around $20 at that point but in the recession that stock had dropped to $5 that’s been it has been

A $5 stock by 2014 it was a $70 stock again so you can see how how much in by the ways i mean within a year after dropped those lows around $5 i think it was back to about $15 imagine buying one year old call options on that imagine the percent of gains you would have got it would have been thousands of percent on a game so if you had you know 100 dollars invested

That money would try to do worth a thousand dollars plus at that point so i buy call options start loading up i’d be using that 30% that’s just been sitting around i would probably also be using some of the the money i made hopefully from shorting the automaker’s shorting the housing stock and then i would start to slowly build back up my poor folio into not just

Call options and in cash and goals and things things like that but i would start to build up to more normal portfolio other investing in the best of the best companies like i do and you guys know that so that is how i would play it if i knew or really felt strongly that a huge recession was about to come if i felt like that that is exactly how i would play out my

Portfolio guys that’s exactly how i would do it and i hope you enjoyed this thing i you know leave me any comments if you have any comments on how you would play it if you thought a big recession is coming of something you know would you play it this way would you think about these things do they open up your minds to some things i would love to hear from you guys

Today if you just came across this channel use not subscribe you may want to reach personal finance and channel we talked entrepreneurship i’m an actual business owner i give away so many business tips we talk to stock markets and most of anything thank you for watching guys and have a great day

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Best Investments During a HUGE RECESSION! By Financial Education

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