You already know the Stock Market is crashing, a housing market collapse is on the way, and we are about to enter a recession. This video gives well thought out advise on what to do now to prepare for an upcoming recession, housing market collapse, and stock market crash.
Hi guys it’s stock curry you already know the stock market’s having its worst start in the history of the stock market a housing crash is coming and also a recession in today’s video we’re going to talk about what you should do about stock market going down a housing crush coming at a recession so let’s get into it all right you already know the stock market is
Absolutely crashing right now it’s the worst start in the history of the stock market it’s getting to the point we can’t even go back and look at any other historical time and period because the fact is this is the worst start ever there’s nothing to compare it to so rather than talking about the past and what we should have done or maybe gotten prepared for let’s
Talk about what you can start doing right now with the money that you have now first of all a lot of people are down a lot of money you probably are down a lot of money in your portfolios as i am in a lot of my long-term portfolios as well a big mistake that a lot of people make is they try to use margin in order to get back their gains kind of the old gambler
Mentality where if you lose just double up and you’ll get it back i want to warn you against that though if you use margin you’re not going to gain those gains back all you’re going to do is end up losing money twice as fast so i want to warn you against using margin so first thing really is just what not to do don’t use margin just hold off and let’s make some
Smarter plays now before i talk about what you should do i want to clarify very cl quickly that i am not a financial advisor i am not your financial advisor nothing i talk about today is a recommendation to buy sell or hold any asset these are just my opinions which may or may not be accurate so please do your own research before investing in any asset all right
Three things that i feel like we should all be doing with the stock market starting right now today and the first thing is hedge and the best way that i think you can hedge your portfolio against further losses is with leaps put options now a leave put option is just a put option that expires at some point far in the future usually a year or further out and these
Are beneficial because they’ll make money as the market goes down but you won’t lose so much money to time decay and if you hold them over a year and you profit you’re only going to pay the long term capital gains tax rather than the short-term capital gains tax so we’re talking about put options that expire more than a year from now now if you are unable to trade
Put options a lot of people like to go and buy the inverse ets things like ubex y as pixel things like that now the problem with inverse etfs is they are designed to go down over time in fact if you look at something like ubxy trading at about 15 share right now and you go back to its start about 12 years ago it was trading at about 1 billion dollars a share so
You know it’s kind of ridiculous but seriously they’re designed to go down in value over time by a significant amount so just keep that in mind that if you do do an inverse etf it should be a trade and not a hold i never recommend holding an anniversary etf longer than one week if you hold it longer than one week there’s a very good chance you’re gonna lose money
On it because of its nature and design that it’s supposed to go down over time so the best way to do a long-term hedge in your portfolio is with a leaps put option if you’re able to trade put options for most brokers it’s going to require options trading level 2. okay the second thing that i think a lot of people should be doing in the stock market right now is
Just holding cash if you have a certain amount of money that you would normally use to buy into the stock market rather than using that money to buy stocks just hold cash just build up your cash in your portfolio and wait for the stock market to bottom out there’s a lot of signs the stock market’s going to bottom out in october of this year now you know there’s
No guarantees it’s just predictions based upon history but there’s a lot of indications that we will bottom out in october this year so just hold cash and then maybe in november use all that cash you saved up to buy the dip at extreme discounts now the third thing that you could do is if you don’t want to worry about it then just keep dollar cost averaging in
Just keep dca in there’s no reason to worry about stocks going down if you just keep dca in or dollar cost averaging in then you’re just going to keep buying stocks at cheaper and cheaper prices and eventually the stocks will rebound and you’ll make money so those are three different things that you can do in the stock market all right now let’s talk about what
You should do to prepare for a housing market crash first of all we just had an incredible time with larry jones earlier on wednesday where we went through it for about an hour on the live stream and talked about the housing market crash and how it’s going to affect the stock market as well as an incoming recession so i just wanna welcome everybody who has joined
The channel from stock up with larry jones thank you so much for subscribing i’m so happy to have you here so let’s talk about what we should start doing now to prepare for an upcoming housing market crash now the first thing that i would recommend and again i’m not a financial advisor but just from my personal experience the first thing that i would recommend is
If you are not currently a homeowner if you’re currently renting and it doesn’t matter what your age is if you’re currently renting i would do everything in my power to go buy a house it doesn’t have to be a fountain house even if you have to downsize i would do everything in my power to buy a house here’s why rental rates are going up there are some indications
That riddle rates could rise as much as 20 percent per year so i want you to do a little math and just see if you can afford a 20 rice if you’re currently paying a thousand dollars a month in rent can you afford twelve hundred dollars a month if you’re currently paying two thousand dollars a month in rent can you afford two thousand four hundred dollars a month if
You’re currently paying three thousand dollars a month can you afford three thousand six hundred dollars a month and that’s next year if that three thousand dollar a month payment you’re paying now can you afford four thousand two hundred dollars a month two years from now if you’re paying two thousand now can you afford two thousand eight hundred dollars a month
Two years from now if the answer is no then it’s in your best interest to go buy a house right now and to lock in a mortgage the beautiful thing about buying a house the huge benefit of it is that your monthly payment is locked in for the next 30 years no matter how much inflation goes up no matter how much interest rates go up no matter how much rental rates go
Up you continue paying the same exact amount as when you first got that mortgage and that is the huge tremendous benefit of buying a house so the first thing i’d recommend is if you are not currently a homeowner to do everything in your power to buy a house right now before rates go up even further buy a house right now that would be my recommendation now if you
Are thinking there’s no possible way you can afford a house i want to let you know that there are programs for first-time homebuyers first of all if you’re former military you can qualify for a va or veterans loan and those a lot of times have zero percent down and pretty much any credit score is going to get approved 550 credit scores approved right so va loans
Are tremendous if you served in the military beforehand now if you didn’t then as a first-time homebuyer you can still qualify for what’s called an fha loan and the beautiful thing about an fha loan is you only have to put three and a half percent down if you’re buying a hundred thousand dollar townhouse or condo you’re looking at thousand five hundred dollars
Down if you’re buying a two hundred thousand dollar ten ounce or condo you’re looking at seven thousand dollars down for a lot of people it equates to about two months worth of rent and so this is a great great way to buy your first house now even if you don’t have a down payment you can also get down payment assistance there are actually programs out there to help
You buy your first house that have down payment assistance programs so definitely i recommend you go talk to a lender you would be surprised at your ability to get approved for a house seriously it is so easy to buy a house and of course the first step is getting approved with a lender getting what they call pre-qualified once you do that then you can actually go
Start looking at real estate so i what i’m going to do for you guys is i’m going to put my lender down in the description below my letter has helped me buy multiple houses over the years and she is like her team her company is licensed in 49 states so no matter what state in the country you are in well except for one i can’t remember it’s alaska or hawaii they’re
Not licensed in but other than that they’re pretty much licensed every state whatever state you’re in you can contact my lender and she can talk you through get you with the right people and help find out uh what it’s gonna take to get you into a house so that’s my first recommendation is definitely buy a house now i wanna stress right now i’m zero zero financial
Motivation for uh trying to get you to buy a house and and you know referring you to my lender zero financial motivation whatsoever i am literally just saying this to help you out because i’m telling you when i bought my first house i literally did not think i could afford it i mean it was sounded insane to me and i seriously did not think i could afford it but
We went out on our limb we bought it and i got to tell you it was the best financial decision ever because that is when i started building wealth never before in my life had i built wealth buying my first house 10 years ago was what got me started on building wealth so i absolutely recommend everybody buy a house it is the greatest wealth builder in the united
States okay uh all of that said when you go to get a loan make sure you get a 30-year fixed loan and not an arm an arm is an adjustable rate mortgage a lot of lenders are starting to put people into adjustable rate mortgages because they have a lower interest rate than a 30-year fixed and your payments are lower the problem is it’s adjustable which means a year
From now when interest rates are up two three percent from where they are today your interest rate you’re paying is also going to go up two or three percent your mortgage payment is going to go up significantly as well and you will be in no better position than you would have been if you just kept running so i recommend you do not touch a adjustable rate mortgage
Make sure you’re getting a 30 year fixed and if you can afford it a 15 year fix but do not touch the adjustable rate mortgages of the arms the other thing is be careful when shopping around for rates because a lot of lenders will quote you a very low rate but then they’re charging you what’s called points or a massive amount of money up front that you have to
Pay in order to get that lower interest rate and you’re actually better off a lot of times going with a higher interest rate and less money up front so again make sure you’re going with a lender you can trust and like i said i’ll put my lender in the description below if you guys want to contact her okay the other thing is if you are currently a homeowner a lot
Of people are thinking well should i sell now and take out cash well if you’re currently a homeowner the problem if you sell now is where do you live and the issue is most homeowners right now they got very very low interest rates i mean two three percent so if you are going out to buy a house now a replacement for when you’re selling your your interest rates
Gonna be significantly higher possibly twice as much as what you’re currently paying and so the cost to move is extremely expensive right now so you know current homeowners man i would just hold and if you feel like you really need cash and you want to pull cash out of your house consider a heloc or home equity line of credit what a heloc does is you will get the
Ability to pull the cash value out of your house so typically you can go up to 80 let’s say that you have uh you know 40 equity in your house say you have a 200 000 house is what your house is worth and and you only owe a hundred and twenty thousand dollars on it and you got eighty thousand dollars in equity what a heloc or home equity line of credit will allow
You to do is it allows you to pull out equity up to 20 ltv or loan to value so uh essentially if you have 40 percent equity in house you’ll build 20 of it out and then you’ve got access to all this cash that you can then use to pay off credit card debt uh build up a savings invest in the stock market and cheap uh all these things you could do and we’re going to talk
About how to prepare for a recession in just a minute but heloc is a great way of getting access to cash that you can use for the future if anything bad were to happen to you such as getting laid off for a job or just maybe putting yourself in a better financial situation like paying off credit cards and then finally if you are a real estate investor i spoke to
My lender earlier today and she said just wait don’t buy any real estate right now as an investment property because as an investment property the issue you’re running into are housing prices are sky high and interest rates are going up and as an investor we can probably get better deals about two or three years from now just by being patient and waiting uh but
As a renter you definitely want to be buying right now so you can get out of those rental payments and avoid those significant increases and rentals that are coming up right around the corner so if you’re not currently a homeowner definitely do everything in your power to buy if you are a current homeowner just wait maybe pull out a heloc get access to your cash
And if you are an investor just wait for about two or three hours for everything into the housing market to crash and for you to get into a situation where you’ll be able to buy investment properties a lot cheaper than where they are today okay the third thing is how do we prepare for a recession and this gets a little bit more into personal finance so let’s talk
About how you can prepare for a looming recession first of all let’s talk about what happens in a recession and some of the things you need to prepare for the first thing that you’re gonna have to deal with in a recession are possible layoffs a lot of people get laid off during your recession so you definitely want to make sure that you and your family are in a
Financial situation to where you can weather a layoff possibly laid out for as much as six months it’s happened it’s happened to me before so what i would definitely recommend is getting some cash saved up now getting savings in your bank account try to get three to six months worth of savings saved up in your bank account now don’t worry about inflation a lot of
People say i don’t want to hold cash right now because inflation is just going to eat away all my cash look it doesn’t matter the point is this is an emergency fine even if you lose 10 percent of it to inflation it is so much better than getting laid out from a job being unable to pay your bills and being homeless out on the streets i would much rather lose 10 of
My cash inflation then end up homeless on the streets because i didn’t have any savings so definitely the first thing i would do to prepare for a recession is build up your savings now once you get the savings built up and you’re going to be able to weather any sort of storm the next thing you want to do is start paying off your personal debt especially your credit
Cards because as interest rates start going up the amount of interest on those credit cards is going to rise as well and look credit cards are some of the most expensive personal loans you could possibly get uh if you are have really good credit your interest rates down are 15 18 percent that could rise up to 25 and if you have bad credit you’re already paying 25 30
That can go as high as 35 so definitely you want to get those credit cards paid off now before the interest rates start to rise and you get absolutely clobbered on those interest rates so try to get those credit cards paid off and again if you get heloc and you’re pulling money out you can do both at one step you can get that savings build up and pay off those credit
Cards now the final thing is let’s say you’ve got that six months of savings built up you’ve got those credit cards paid off and you still have extra cash and you don’t quite want to buy stocks yet you just want to hold it for a eventual bottom of the stock market the last thing you can do is you can put that money into something that’s going to earn interest and
Preferably something that will in interest higher than inflation will eat away at it and the best way to do that right now is through eye bonds or inflation-backed bonds and so the i-bonds are a us government treasury bond that the rates are based upon inflation now again these are only open to u.s citizens so there’s a little bit of a limitation there but if you
Are a u.s citizen you can buy an eye bond and get right now 9.62 percent interest massive 9.62 interest that is above inflation you will actually make money no matter what happens in the stock market it is a great way to make money guaranteed now if you are interested in getting those eye bonds all you have to do is go to a website called treasurydirect.gov
Okay treasurydirect.gov when you get to treasurydirect.gov there is a link right at the top huge banner it says you know interested in ibonds click here click there and get all the information of course there’s some limitations you can only do ten thousand dollars a year per person if you’re married that’s twenty thousand a year if you wanna get them for your
Kids too you know thirty four to fifty thousand dollars whatever however many kids you got um and then the other issue of course is there’s certain ways you can kind of get around it and and get more than ten thousand dollars invested if you you know use a roth ira you can add a little bit of extra if you use a tax return you can add a little extra uh if you own
A small business you can add a little extra but for general people it’s a ten thousand dollar max and there’s all these different ways you can buy more than ten thousand dollars it’s all explained on the government website again you buy those directly from the federal government at treasurydirect.gov okay that’s gonna wrap it up for today’s video those all the
Tips and information that i have for you guys to help you out uh for those of you guys who are wondering who have never seen this channel before i have a vip discord where i provide coaching to help you guys make money as the market’s going down now we don’t make money on every single trade not even close but we do make money on most of our trades and the key is
To make money while the market’s going down we’re doing that through options so if you’re interested in learning options and figuring out how to do put options call options and vertical spreads and all the different ways that we’re making money as the market’s going down then you can come join the vip discord and if you are interested in that i have full coaching
I have training programs over there i will teach you how to actually invest in options including the more complicated multi-leg options i also include to teach you how to do the fundamental analysis i teach you how to do technical analysis with charting and fibonacci retracement levels and all of that all of the classes are available for all of my vip members as
Well as the uh personalized coaching with all the questions you want to ask in the chat rooms and all of my trade alerts so you get every single thing that i buy and sell before the orders are even placed in the vip discards all included and it’s just 20 bucks a month that’s it what are the cheapest vip discords you’re gonna find so huge amount of information for
Just 20 bucks a month and if you want to sign up for that if you want to get the coaching the training the classes the trade alerts all of it you can sign up at stock curry.vip get vip that’s stock curry.vip get vip okay uh thank you guys so much for joining i want to remind you guys to hit that like button and subscribe and if you’re on youtube go ahead and click
The bell icon and click all so that you can get notified when i release my next video i hope you have a lot of success trading and i will see you tomorrow you
Transcribed from video
DO THIS NOW to PREPARE for a Recession, Housing Market Collapse, and Stock Market Crash – May 19, 22 By Stock Curry – We Profit Day and Night