Entrepreneur, investor, and founder & CEO @VirtuseExchange
Truth doesn’t care about your feelings.
As an American novelist, Flannery O’Connor said, “The truth does not change according to our ability to stomach it.”
The sooner you let the hard truths settle into the pit of your stomach the better.
Here are a few about the current recession:
1. Now is not the time to be complaining
The first step to getting through the corona recession is to quit complaining. It doesn’t fix the economy and it will not help you make a living. Complaining makes you feel like a victim. The recession will eat you alive if you pay too much attention to your feelings.
2. Government is not coming to save you
No one is going to save you. Governments only save corporations. Those who thrive are those who save themselves and then help save others through their effort.
3. The government will bail out the corporations, again
This might not sound fair, as the government doesn’t step in when an individual is close to bankruptcy. But corporations have the government as the ultimate safety net. This is what happened with banks in 2008 and will probably happen with airlines this year.
4. Money printing and zero interest rates are here to stay
5. Your currency will devalue
6. Corporations will get stronger by buying bankrupt companies
This is another consequence of money printing. With the free money, the big companies are waiting for their predators to collapse. Corporations can buy competition with their fully trained employees at a fraction of the cost during recessions.
7. The rich are going to buy real estate dirt cheap
Businesses aren’t the only thing that’s struggling during recessions. Real estate is always following up the bankruptcies. Over the next 18 months the biggest drop we’ll see in the commercial and residential development. Wealthy investors will be shopping at a discount again.
8. Banks will force you to pay up
Mark Twain once said: “A banker is a fellow who lends you his umbrella when the sun is shining but wants it back the minute it begins to rain.”
That’s right, banks can be as irresponsible as they want with their business. The moment they’re about to fail the government steps in and gives them free money. You should not expect the same treatment from the government when you’re close to bankruptcy.
9. Nobody is hiring
There are more job seekers than you may realize. It’s a simple question of supply and demand. The more people get laid off, the more search for jobs. Now may not be the best time to start your next career or be up against an avalanche of job seekers.
10. Another income stream is crucial
Since a ton of people got laid off, the cost of doing business dropped significantly. This is the time to start thinking about building a side business. If you have a good business idea, the recession could be an ideal launchpad for your second income.
11. Excessive leverage will wreck you
Leverage is your worst nightmare. Many people are signing up for trading platforms that offer up to 100x leverage. Leverage equals debt. So, never invest money you don’t have to make a quick buck.
12. Protest and riots will be on the rise
13. Massive spying on us will continue
The Chinese-style control is becoming the new normal, globally. The problem being is that people are begging for it. As Orwell said it eloquently:
14. The lines between home and work will be blurred
15. Commodity prices will drop
When economies come to standstill businesses stop buying commodities. Thus the price for them drops. It doesn’t mean that oil, copper, iron lost their intrinsic value. It’s just that companies don’t need them right now. The large companies that have been getting their free money buy the commodities and wait for the recession to blow over.
16. Insiders will be buying stocks at the bottom
17. Politicians will misuse the information
18. More people will put money to crypto and gold to store value
So, stop worrying so much about your feelings and start worrying a little more about getting out of this mess.
The truth has no regard for your feelings. The truth doesn’t do anything. It just is.
(Disclaimer: The author is the Founder and CEO at Virtuse Exchange)