During the boom times a smart man will prepare for the inevitable doom times.
A man begins his preparations not during the crises; he begins his prep-work the moment those bad times are over and the good times begin.
During this time when you are preparing, the economy and the stock market will be roaring. You've grabbed the bull market by the horns, however, that bull's roar will eventually turn into that of a bear's growl.
People will be spending their money like crazy; buying the latest clothes, electronic device, newest smart phone, gadgets and what ever else a normie will blow the money the don't have on.
This is the time of mass consumption on the part of the normie. This means credit cards are flying out of wallets, debt loads are being racked-up on the promise of low interest rates and on the hope/ignorance that the sun will always be shinning.
It's all good, right? The economy is flourishing!
So, what are you doing?
You aren't being this stupid, that is for sure.
No, this is the time to be sharping your weapons and rallying your army. Whilst everyone is being greedy, THIS is the time to be preparing for disaster.
Remember Rule # 3 in part I of this series: The Market Will Always Eventually Crash.
Although you might not know when, why or how, it is certain that what goes up must always come down. That is what makes a market.
It is always important to prepare before it happens.
Recession Preparation Checklist:
Stop spending like everyone else
Begin building up capital/dry powder to be deployed later
Build up your credit score
When the inevitable crash comes you'll want to be the one with deep pockets and ready to take advantage of those juicy low-interest rates and low asset prices that come in the wake of a depression.
There is nothing worse than being surrounded by gold and having no tools to harvest it.
Did you get all of that?
Good, because we are in the midst of a global recession and now is the time to be greedy.
Buy when there is blood in the streets.
Get into the pool when everyone else is too afraid to swim.
Leave the pool when it gets too crowded.
Read | How To Survive A Recession: Part I