Everywhere you look people are crying that the sky is about to fall. From Trump losing the US trade war, to the Australian housing market softening and the yield curve predicting the next recession is near as per The Economist’s video below.
What can happen in a recession?
The bad things that can happen during a recession are;
- Job losses
- Raises and wages cut
- Banks stop lending
- Housing market declines
- Stock market crashes
So why is this good for Millennials and Gen-Z?
Despite popular belief, Millennials and Gen-Zers are great at saving, in fact they are better than any other age group at putting aside dollars for a rainy day or an investment.
So, when a recession hits, cash will be king. Recessions can briefly level the playing field for this saving generation to pounce, if they are brave enough.
In a recession the rich can lose millions of asset wealth; the stock and property markets can crash and suddenly the top investors and big spenders are selling not buying.
And when they sell, savers can use the opportunity to start building a good property or stock portfolio with less millionaire’s and investment companies to compete with. Think of it like a massive clearance sale at your favourite Ed Hardy store. Look at this shirt below, this could be you, but less terrible.
Without going into the details on how markets crash, history tells us that when they do fortune favours the brave.
All of a sudden the stock and property market become a flea market, if you have a small bit of savings you can buy stocks at a massive discount, if you have a lot of savings you might be able to buy some houses and appartments completely outright depending on where you buy and how big the the crash is.
So if you’re not in the stock or property market right now, the best thing might be about to happen to you; a market crash. Robert Kiyosaki predicts it will happen very soon, so start reading, studying and prepare to be brave.