➡ During recessions, millionaires often increase their wealth by understanding and using the Federal Reserve’s playbook. This involves taking advantage of low interest rates and increased money supply, known as quantitative easing, to invest in assets like stocks, real estate, and commodities. While this strategy can lead to short-term economic recovery, it can also cause long-term issues like inflation and currency devaluation. Therefore, it’s crucial to understand these cycles and seize opportunities during economic downturns to protect and grow wealth.
➡ To protect your finances during a recession, focus on real assets like real estate and Bitcoin, maintain a long-term investment mindset, and prepare for the Federal Reserve’s actions. The Fed often lowers rates and prints money when the economy slows, causing asset prices to rise. Stay invested, prepare for volatility, and position yourself for the next round of quantitative easing. Remember, the rich don’t fear recessions, and understanding how the financial system works is your greatest weapon.

How to invest like a millionaire in a recession and profit from the next market crash. Now, recession, it’s all you hear about right now. We’re either in a recession or there’s one coming fast, but so what? What does it even mean for you and for me? Now, there’s no shortage of doom and gloom all over the news, but rather than contemplating if we’re going into recession, a much better question to ask is why do the wealthy keep getting richer during recessions while everyone else gets crushed? Now, if you’ve clicked on this video, you’re probably tired of feeling like you’re, you know, stuck in the system, stuck in a system that wasn’t designed for you.

You’ve watched the stock market crash only to see it rebound just after you pulled out. But what if I told you there’s a playbook, there’s a secret, the top 1% used to profit during every financial crisis. So in today’s video, I’m going to break down exactly what millionaires know and do during recessions that allow them to not just survive, but thrive when the economy takes a nosedive. We’re going to explore the specific strategies used during the 2008 financial crisis, the 2020 COVID crash, and what you can do right now as we head towards another potential downturn.

And make sure to stick with me until the end because I’m going to share actionable insights that you can apply to protect and grow your wealth during these uncertain times. Now, real quick, if you’re new to the channel, my name is Mark Moss and I’ve been investing my own money and building businesses through five boom and bust cycles. Now, over the last few decades, and now for the last six years, I’ve been making videos and writing a financial research newsletter to help investors avoid the same expensive mistakes that I made. And if you understand these cycles that I’m about to break down, then you can do just that.

Alright, so let’s go. Alright, so to understand how millionaires make their money in recessions, we need to go back to the 2008 global financial crisis. Now, if you watch my channel regularly, you know that I don’t like to go too far back. There’s a reason why we would, but everything changed in 2008. Okay, so we’re gonna look at that. So in 2008, the global financial crisis that we had the great financial crisis, at that time, the world faced a liquidity crisis, alright, that’s what happened. Banks were failing, asset prices were plummeting, and fear basically gripped over the markets.

But here’s the thing, while the average investor was pulling their money out, certain millionaires and institutions were doing the exact opposite. They saw an opportunity. Now for me, I got crushed in the 2008 real estate crash. But then my friend and mentor Robert Kiyosaki was going in, and he became a billionaire. And so there’s two different strategies for what happened. But what did these people like Kiyosaki? What did millionaires know that the rest of the world didn’t? Well, the answer lies in understanding the Federal Reserve’s playbook. Now this is a playbook that they would use, they have used, and they will use over and over again.

And it all started when the Fed decided to basically step in by cutting interest rates, and of course, printing money, right, increasing the monetary supply. Now this move changed the game, it lowered interest rates, borrowing became cheaper, making it easier for businesses to access capital. And then by printing money, the government stimulated the economy, basically injecting liquidity that propped up the markets. Now, this combination of low interest rates and massive money printing or monetary debasement is what we now call quantitative easing or QE. Now this is the ultimate tool in the central bank’s arsenal to combat recessionary periods.

Now, this is what makes 2008 different. This is the first time we had seen quantitative easing in the United States, and it changed the fundamental basis of the financial system that we have today. But here’s the kicker. While QE props up the economy in the short term, it creates long term consequences, namely inflation, asset bubbles, and the devaluation of the dollar. They’re all side effects of this QE. Now to understand this even better, let’s fast forward a little bit and let’s go into 2020. So during the COVID-19 pandemic, the economy was literally shut down.

The stock market tanked, we saw Bitcoin, gold, real estate, everything basically was dropping in price, just like it was in 2008 all over again. But this time, something else happened. This time, again, something changed in 2008. This time the Fed acted faster than ever before. In 2008, it took from the housing crisis in 2006, it took almost 30 months or almost three years for the Fed to act. But in 2020, the Fed acted faster. As a matter of fact, within weeks, they slashed interest rates down to basically zero. They printed trillions and trillions of dollars to keep the economy afloat.

And then what happened? Well, asset prices skyrocketed. Now, if you were invested in the stock market or real estate in 2020, you probably saw massive returns. But here’s the twist. This wasn’t because the economy was actually strong, right? You have to understand that it was because of the artificial injection of liquidity, basically cheap money flooding into the system is what propped up asset prices. Now, millionaires, of course, understood this, right? They seized the moment they knew that in an environment of low interest rates and free flowing cash, asset prices would only go one way up.

Now, I want to just take a second just to tell you that not all asset prices moved up at the same rate. So if you look at how gold went up since 2020, or the S&P 500, or Bitcoin, for example, you can see that different assets have a different sensitivity ratio. Now, part of what helps us understand this is understanding where we’re at in the cycles. It’s something I call a quantum leap cycle. It happens about every 50 years. And during these quantum leap cycles, there’s really only one single place that you want to be invested.

And if you want to find out more about these quantum leaps, this quantitative wave cycles and how we can use these to build enormous wealth over the next 12 to 15 months, I’m going to do a whole live presentation on it. Next week, you can come join me live. It’s free. I’m going to break down these cycles. You can understand the exact assets and I’ll even give you I think the top like six assets that I’m looking at right now. Come join me live. Ask me all the questions you have. There’s a link down below.

If you want to come hang out with me, it’s a fun time. Either way, you’ll learn a lot and we can make a lot of money. So that’s all free. But let’s get back to this because when these asset prices go up, we have to understand that it’s very dangerous, especially for everyday investors. The reason why is because what goes up must come down, obviously, right? And so what this means is that when the government prints money, it devalues the dollar, right? So it causes inflation prices go up, it skyrockets.

And while your stocks go up in value, that’s great. The purchasing power of the dollar goes down, right? It’s like a like a teeter totter. It goes like this. Now, to illustrate this, let’s just take a look at the chart of the M2 money supply. Now, this is the total amount of money in circulation. And you’ll see how drastically it increased post 2020 leading to this massive inflation that we saw in 2021. Now, at the same time, we saw the stock market soaring, but the prices of everyday goods and services also skyrocketed.

So you know, during that time, if you were sitting in cash, a lot of people were afraid that the market was going to keep crashing, they’re out of the market. And so if you’re sitting in cash, you were actually losing purchasing power at a very rapid rate. Now, again, this pattern is not new, right? We’ve seen this before throughout history. We can go back as far as you want. We can go back to the Weimar Republic in Germany in the early 1920s. During that time, the government had to print all this money to pay for its war debts.

And then what happened? Well, hyper inflation took hold and the German mark became worthless in about nine years. It got so bad that people were actually burning cash in their fireplace because it was worth less than the wood that they could buy to keep themselves warm. And listen, I’m definitely not saying that the US is heading for hyperinflation. But the lesson here is crucial. When governments print money, asset prices rise, right? But the value of the currency falls. Okay, so millionaires understand this. That’s why historically, the wealthy use these periods of crashes and the currency devaluation to acquire real assets, all right, stocks, real estate, commodities, and Bitcoin, things like that.

Now, one key takeaway is that when everyone else is panicking, the wealthy see opportunities. So they understand that as long as the Fed’s playbook involves cutting rates and printing money, then asset prices will eventually rise again, even if they’re short term pain. But here’s where things get a little tricky. Okay, as we saw in 2022, the Fed can’t keep interest rates low forever, right? Inflation was too high. When it got out of control, the Fed had no choice but to raise rates, which made borrowing more expensive, which slowed down the creation of new money.

And this is exactly what happened after the 2020 crisis, right? Inflation soared, it peaked at over 9%. And then of course, the Fed had to respond by rapidly raising interest rates. And now remember, again, when rates go up, asset prices tend to fall because borrowing becomes more expensive. That’s what we saw in 2022, right? The S&P, the NASDAQ, Bitcoin, they all fell. But at the same time, you know, banks started struggling at the value of their assets, many of which were based on the assumption of low rates, they begin to drop.

And then investors who weren’t prepared, they got caught off guard by this, right? Their portfolios took a big hit. So the question is, how do you protect yourself in this environment? How do you avoid falling into the trap of rising rates while still positioning yourself to win during the next round of QE, which is exactly where we found ourselves. And the secret to investing like a millionaire during a recession comes down to a few key strategies. Okay. First, you want to focus on real assets. So in a world where the dollar is being devalued, you have to invest in assets that are of course, going to appreciate over time, real assets, so real estate, commodities, Bitcoin, those are all good things.

Now, these assets tend to perform well in inflationary environments, because they’re denominated in dollars. So as the dollar is losing value, the assets become more expensive, right? That’s how you preserve your purchasing power. Another way is we want to have a long term mindset. So millionaires don’t try to time the markets. Instead, they have a long term perspective. So they focus on building wealth typically through their businesses first. And then what they do with their money leftovers, they dollar cost average into investments, meaning that they’re investing consistently over time, regardless of what the short term price fluctuations are.

Now, this allows them to buy more when prices are low. And it also benefits when prices rise again. And then the third key is that you need to be ready for the Fed’s next move. Now, the good thing is, is that the Fed used to have something called Fed speak, which meant that they used vague words to sort of mislead the market. But today, the Fed uses something called forward guidance. And that means that they’re basically telling us what’s happening months in advance. And right now, the Fed has told us that yes, they’ve been raising rates aggressively.

But now that there’s fears of this great recession coming into play, we can see unemployment starting to falter. They’ve already told us that they’re going to start cutting rates. And so basically, they’re going to turn the money printer back on. And this means that yes, asset prices are going to go up again. Now, if you need to position yourself take advantage of that, you should probably do that right now, because it’s coming. Now, if we look at the historical chart of the S&P 500, you can see that after every major crash, the market eventually recovers, and it hits new highs, right? This is why staying invested during downturns and adding to your positions is so important.

Those who panic and sell and try to sell on the sidelines, they miss out. And those who push in make more money. As long as the Fed playbook is intact, which we can see right now, they’re telling us that it is. So the question is, where does this leave us today? We got asset prices at all time highs right now. Okay, but cracks are showing through the economy, right? As I said, unemployment’s rising, bankruptcies are ticking up, and we kind of have the Fed’s hands that are sort of tied, right? They’ve been raising rates, but the economy is slowing down.

But as they already told us, they have no choice. They have to cut again, right? This puts the Federal Reserve back into defense and protection zone. And with the current rates at about 5% right now, they have a ton of ammunition, meaning they have lots of room to start cutting rates. And when they do, get ready for asset prices to continue to shoot up again. Okay, so what moves should you be making? What moves am I making? Well, number one, I want to stay invested. Okay, the long term trend is clear, asset prices rise to the dollar devalues.

And I just ask myself, are they gonna stop printing money? And the answer is probably no. The probability of that is very low. Number two, I want to prepare for volatility, right? Recessions bring short term pain, right? Different sectors of the economy are affected differently, right? Different businesses, profits. So it’s not like a straight line. So we know it’s going to be a little bit volatile, but we know the direction that we’re going. So stay invested, focus long term and prepare for the volatility. And we want to be looking ahead, right? The millionaires of tomorrow are investing today, they’re possessing themselves for the next round of quantitative easing, which the Fed has already told us is on the way.

So the question is, are you now in the end, the question isn’t if another recession is coming. It’s really a question of when and the Federal Reserve’s playbook is predictable. When the economy slows down, they lower rates and they print money. And when that happens, asset prices rise. The only question is, will you be prepared? Now, let’s be real for a minute here, the financial system, it wasn’t really designed for people like you and me, right? But that doesn’t mean that we can’t win. In fact, understanding how it works is your greatest weapon.

The rich don’t fear so can you. Now it’s time to stop playing by the old rules. The next recession is coming, and you can either sit on the sidelines, watching as the wealth gap widens, or you can join the revolution. You can invest in real assets. You can hedge against inflation and finally take control of your financial future. Now the choice is yours, right? You can either be an investor or you can be a spectator. Now, again, like I said, I’m going to have a live presentation next week that’s going to show you this quantum wave cycle that happens about every 50 years.

And it really dictates where we should be investing, right? Not every asset moves up at the same race, we want to be in the fastest boat or you know, bet on the fastest horse. So if you want to know about this quantum wave and how it’s created this investing black hole, and how we could have 10, 20, 30, 50 times gains over the next couple of years, come join me live. There’s a link down below or the code on the screen. It’s free. Come hang out, check out the information, ask me any questions that you have, we’ll do it all live.

And if you found value in this video, go ahead and smash that like button for me real quick. And if you didn’t like the video, it’s a little bit different. You can give me a thumbs down. That’s okay. But at least tell me why in the comments down below, subscribe if you’re not already subscribed and that’s what I got. All right, to your success. I’m out. [tr:trw].

See more of Mark Moss on their Public Channel and the MPN Mark Moss channel.