Topic: Can One Get Rich or At least Not go Broke During a Recession? - page 5. (Read 1136 times)

i guess, it depends on how people will live their respective lives, whether recession or not. if you know how to be frugal at all times, you will find out that you can survive at any crisis or any season. also, you need to find ways on how to earn extra income. those people who have financial capital know how to take advantage of this opportunity. so even if you don't have big funds in place, you should know where to put your money into. you need to work on your own and not rely from others. don't look also from other's achievements, you will only get depressed.

In a word, it's as simple as in the crypto market. When the bear market happened, a lot of people lost their money and had to sell their bitcoins at a lower price, many even went bankrupt and left the market. But for those who know how the market works, bear season is a rare opportunity and they have to wait years for it to happen. While many people dumping because of losses, there is always someone who buys it back at an extremely cheap price. Then a lot of people will get rich because of the bear season and a lot of people will go bankrupt because of the bear season. The world economy works similarly, the crisis cannot last forever.

It possible for one to get increase in income whether in recession period or not, but the truth is that in time of recession it is a tough time for the economy of individuals and the economy struggle.  In recession some government depend in borrowing to maintain the economy. After borrowing money in recession some business ends up folding up.  Recession is a difficult time that is always not good for economy and businesses,  it favours few sectors.

During a recession, of course, many people become difficult and economic difficulties that make many people poor, but for those who already have strong financial capital it will be easy to increase wealth, usually many companies go bankrupt and need capital so if they have large capital they can buy the company's shares.

Why loans can be so good during an economic recession? Doesn't that also have a risk if the borrower can't pay off the loan when it's due to pay it off according to the applicable rules? Because of every condition that occurs in this world, it is only a trading business by selling daily necessities that will continue to run without a hitch by continuing to make profits. In addition, another business that everyone can continue to run is to open a business in a tourist spot that is most visited by the public, because in such a place there is also more money circulating every day.

Of course you can, people who think success always try their best and never blame conditions including an economic recession, even when an economic recession many people increase their wealth, a good business when a recession is the financial sector, namely loans.

During recession you live within your means the idea of becoming rich is out of it, for instance a person that lost his job wouldn't think of using his savings to invest in a bid to becoming rich when there are bills to be settled and payment for basic goods and services especially in a family who is trying hard to survive the harsh effect of the recession, the high cost of goods and services would deter such a person to have extra funds for investment I doubt if there will be any opportunity to become rich in that period, everyone will strife hard to live comfortably first before considering other investment.

Every day people are getting rich or going bankrupt because of their investments. It takes a chance.
However, most people are still in the position of neither making a lot of money nor losing a lot of money.
(This part is collectively referred to as ordinary people)

You can technically get rich, but will it be by investing? I am not sure. Look at the oil companies, they did fairly well because they were selling something that people needed, and they made a whole lot of money from in fact they broke their profit records this year thanks to these situations. All in all, I would assume that it would be quite difficult for anyone to make a profit during a recession, definitely a hard thing, but nobody can say it would be impossible either. It will definitely be possible if you could end up selling something that people really needs, and keep on selling it more and more.

At every moment, with the recession or not, some people go broke and some people make gains, it's how the world works, and it's full of ups and downs for all people. To summarize anything is possible! It's life! So what makes someone get rich or get broke at any time is impossible to explain in a few words, many factors need to be known to us so we can make any conclusions. I think we all wish to make the right decisions at the right time, but that doesn't turn out like that, I guess we all depend on some luck, in the end!

The question OP asked kind of answers itself.

Millions become millionaires during Covid pandemic

I think people with a lot of experience in trading and investing and also with some important life experience in general are better set up to identify opportunities when the world is in shambles. One such example are those who invested in pharmaceutical companies during the pandemic and made fortunes doing so. A condition is of course that liquidity is available and you saved up enough beforehand.

It is much different for people who need to spend every penny of what they earn each month. They have no choice anyway even if they were to understand that an investment is smart in a certain industry during a recession or a crisis like the pandemic.

As bad as it sounds, but when Putin started attacking Ukraine, some smart people put money into military companies. Just have a look at Lockheed Martin's share price. As bad as it sounds and apart from the moral aspects, this is just to show that there are ways to reasonably analyze what a crisis or recession is actually about and make decisions accordingly.

To summarize, some people will always go broke during a recession. It kind of is an irrefutable given of the term "recession". It means that wealth is destroyed and those who don't own any wealth usually pay their price with painful existential consequences. 

Yes, but if you're a market person, then in the short-mid term, might want to consider put options.  Another idea would be to play the market long and buy shares of "good" companies at a discount right now, hold, and cash in later.

Definitely. Everyone would be affected by an economic recession but big businessmen or company owners are the one who would be later affected because they would be able to endure its early phase but eventually since they are business owners, their company would be more likely pulled by the problem, if the recession will be continuous and will stay for a long period of time.

Savings won't  last forever and as long as they won't be able to do something to add up in their savings, it will eventually be consumed, more likely for a short period of time if the amount they saved is not that big, because recession is the continuous increase on the market price of goods or inflation at this moment.

After experiencing Greece's financial crisis, with the worst one occurring in approximately 2010, I'm fairly certain that I can perfectly relate to the recession's consequences. From my point of view, this is merely the beginning; we're yet to dive into recession. Inflation is bound to rise even further. The FED's increase in interest rates has almost no effect on tackling the surging inflation.

The energy crisis had started to show since September 2021; the current situation hasn't been caused solely by the Ukrainian war. We Europeans made it a lot worse after applying these stupid sanctions against Russia.

We are already in recession and this is how it normally start causing great hike in food price and people with will be struggling to feed, working without seeing any result. Things are getting bad and all we need to do is to ensure we look for other means of getting addictional job so that can at least settle some bills. It is very obvious that the rich may be getting more richer in recession why the poor will be the worse part of the story. Life can be a little but shaky that is why we just have to keep getting more skills so we can fit to corners that can change our life if opportunity comes.

Many of us didn't know what is recession. There are some who have an idea what is it but they didn't know that is coming. They can only assume that there is a recession once they feel the effects in real time. What warren and other famous personalities said is true and it has no difference when we are in the bear market, when the prices are falling and some people are panicking selling their stuffs.

It's said to be the best time to build wealth, that is because we can buy the assets at a cheap price. You got laid off at work and you think it's fine? But, maybe you have a hate with your boss or you hate the scope of your job but for the many, it was a big loss even if we say that it happens for a reason or because of the recession.

Recession is a predictable thing, the people who can survive during a recession are those who have prepared themselves for it. the issue, a severe recession will occur next year, so preparing yourself from now on is a mandatory thing that everyone should do.
I'm sorry that you lost your job, but you have to be able to start something new or try to get a job that is less likely to be affected if a recession occurs, besides that, try so that you and your family can manage finances as well as possible.

That's hard to do even if they've saved that much because what they'll think about is on how to survive having no job. That savings they've got will be used for it and that's why most of them barely will invest into assets like bitcoin. I'd tell them to be enough thinking about huge profits because that won't come in an instant after by just investing but it will require them a lot of time and patience until they meet it. Because it's unknown how long will they remain jobless and even if they put it into an investment, it's highly likely they'll pull it out there for survival.

A person can take advantage of this recession if he pays close attention to what the general public needs. Usually this is related to the problem of staples that are consumed daily by the community.

I once heard a story from a friend where he also experienced laid-off work from his office so he could not work as usual. He tries to observe his surroundings to find creative ideas. He finally devised an idea and tried to make it a reality. And with various experiments, from making it to marketing it to the public, his creations slowly began to be well received. From there, he felt challenged to make it more developed, which triggered him to find other creative ideas.

So from your story of experiencing laid-off work, I think you can find creative ideas like my friend so that you can find opportunities to take advantage of this recession. This is when you are forced to leave your comfort zone to fight for survival. Believe that you can do it. All you have to do is try.

basically all recessions will greatly affect the economy which of course has a very significant effect, smart people will save their money before a recession occurs, every crisis in the world must have a lot to lose but behind that there are some companies that survive the recession and some soar high, and there must be new ventures coming in and saving the economy a turn during a recession. In other words, he said, there were those who were disadvantaged and those who benefited in the economic field, as last year when all the citizens of the world were affected by the Covid-19 outbreak, many companies were financially destroyed because they could not produce due to the "Lock Down" policy in their region. For example, companies that went bankrupt like J.Crew, specialty brands, Hertz Global Holdings and others, and companies that benefited during COVID-19 like healthcare companies like Pfzer and online marketplace companies like Amazon.
I hope a recession doesn't happen because there will be a lot of losses but when a recession is unavoidable I suggest to prepare yourself by saving some of your money and avoiding unnecessary spending. Of course during a recession, people will sell their assets on the stock market and there will be panic sells, and at that time your opportunity to find and buy stocks that are able to adapt to the recession and are able to reverse the company's position. also benefit during the recession, I think it will increase your portfolio.