Here are some facts.
According to the recent financial reports, most millionaires are made at the time of recession, and most numbers of billionaires double their wealth at the time of global financial crises. If you or someone you know who have lived through a recession can exactly tell you how traumatic is the time in crises. People are not only in emotional or financial stress but they are under continuous pressure of losing their job, business, or life-saving or even their home.
Everyone is now aware that the world is about to be hit by an inevitable global financial crisis or recession. The Global Recession of 2020 is going to be one of the scariest recession humanity has ever seen. We faced the last recession in 2008 and the next recession will be after 7-8 years. Recession can be an opportunity in disguise if you have a recession-proof plan.
So what exactly is world recession or global financial crises?
A period of temporary economic decline during which trade and industrial activity are reduced, generally identified by a fall in GDP in two successive quarters. I know after reading this there might be some questions that might have come into your mind.
And just like every other recession, this recession is going to have 2 sides,1 side which is going to struggle, lose jobs, live savings, break families, and can see even worse in this crashing market. The side where people the majority of people will lose their jobs, business clients.
Families, companies are going to get bankrupt, Aad side 2, the side which has been waiting for this phenomena to occur, the side which is going to make a fortune of their lifetime. The side where people are going to multiply their wealth by 2x , 5x or even 10x.
Yes, I know you might be thinking how is this possible? How can someone grow their fortune in this crashing market? How is it possible for a certain segment of society to double or even quadruple their fortune In this crashing market? Why does recession occur? What causes a recession or what are the causes of recession? Why the economy collops at the time of recession?
Let's see how does a recession occur or how can we say that recessions have arrived. The health of the country’s economy as measured by GDP.
Which stands for Gross domestic product.
GDP is the sum of the market values of all final goods and services produced in an economy during a period of time. That means everything you buy or anything on which you spend your money gets counted into the country’s GDP. Like food, mobiles, cars, from a small pin to private jet everything is counted in the country’s GDP.
Generally growing GDP is always good for the country and its economy. But what happens when the GDP starts to decline. it creates an economic slowdown. Fewer products are sold in the market, due to these companies makes less profit, because of these people start losing their jobs and eventually the purchasing power of customer or the people decreases.
This leads to a downward spiral which causes GDP to go down. And when the GDP of a country is decreasing for 6 months then it is considered a recession. But what actually causes recessions. There is no single answer for that there are thousands of variables involved in causing a recession.
So no one can exactly blame one single cause that leads to recession. Our world economic system is flawed and due to this recession is mandatory to occur after some years. It has occurred multiple times in the past. a recession occurs in a recession cycle. it occurs after every 7-10 years.
When a recession occurs how do people react to it? When recessions occur everything starts losing its value. The market goes into a state of panic and people start selling.
People sell their stocks, properties, assets. News about market crash starts to dwell on tv screens and newspapers. When a recession occurs what does the majority of the masses do?
They start selling. Everyone goes into a state of panic and start selling their assets with every news of the market crashing. But Now what does the upper segment of the society does that this time? They all have billions of dollars invested in the market. And just like us, they all know that a recession is about to occur.
So what do they do?
Do they just sit and watch the market crash and watch their investment go to shit. Or they sell everything and wait for the market to recover. The answer is non. A huge secret displacement of Investment takes place just before the prime of recession. And the displacement is not sudden it takes place gradually. They all displace their money from the market to Some secret assets. These secret assets are those assets that tend to show exponential growth at the time of recession.