0:02 everybody says recessions come with
0:03 opportunity and never waste a good
0:06 crisis but how do you invest your money
0:17 during a recession what's up everybody I
0:19 am just petite Singh and welcome to the
0:21 minority mindset you probably know of
0:22 somebody who keeps talking about how
0:24 they're investing their money in this
0:26 economic situation and how they want to
0:28 come out of this economic crisis a
0:30 millionaire you put up with all my money
0:33 and airline stocks and then a Warren
0:35 Buffett sold all this airline stocks
0:37 investing your money is tricky but it
0:39 can be even more tricky during a
0:41 recession which makes me wonder do you
0:42 know how to invest your money during a
0:44 recession yeah find a cheap company and
0:47 buy it yes sort of just like how you
0:49 should smash that thumbs up button in a
0:51 good economy and a bad economy you
0:53 should be investing your money in a good
0:55 economy and a bad economy but when
0:57 you're in the slow economy that's when
0:58 you really want to refine your
1:00 investment strategy and make sure you're
1:01 doing the right things which is what
1:03 we're gonna be talking about today so
1:05 make sure you watch this video till the
1:06 end because you don't want to miss any
1:08 of these key details and we also have an
1:10 exclusive offer from our sponsors - that
1:12 you don't want to miss on the highest
1:14 level of investing you kind of have to
1:17 general investing strategies you have an
1:19 active investing strategy and then you
1:21 have a passive investing strategy and
1:23 then under the active investing strategy
1:25 and passive investing strategy you have
1:27 multiple different kinds of sub
1:28 strategies let's start by talking about
1:30 active investing active investing is
1:32 when you're going out spending time
1:34 trying to find the best companies that
1:36 are on sale and then after you buy your
1:37 investment you're either gonna have a
1:39 strategy that's gonna tell you to hold
1:40 this investment forever or you're gonna
1:42 hold this investment until you hit some
1:45 sort of investment goal like maybe a 50%
1:47 return now obviously investing has risks
1:49 and you are never guaranteed to make
1:51 money or invest you might even lose
1:53 money which is why you always want to do
1:54 your own due diligence and don't just
1:56 blindly listen to your random cousin
1:58 Bunty or I random guy on YouTube you
2:00 know this guy if you want to do this
2:02 active investing strategy you need to
2:04 dedicate at the very least a couple
2:06 hours a week to your investment strategy
2:08 I mean some people will dedicate pretty
2:10 much their whole lives to the strategy
2:12 just reading company charts and stock
2:13 charts and company fun
2:15 mentals all day and night long you don't
2:16 need to dedicate your whole life to the
2:18 stock market to find undervalued
2:20 companies but you do need to dedicate
2:22 some time that way you can find the
2:24 right investments for the strategy but
2:25 before you jump into just researching
2:27 companies and buying stocks you need to
2:29 clearly define your investment goals why
2:31 are you making us a complicated job meet
2:33 my investment goal is to get rich if
2:35 your goal is slow and stable growth for
2:37 the long-term then you can look at blue
2:39 chip companies these are your big and
2:41 established companies everybody knows a
2:44 name of Johnson & Johnson McDonald's
2:45 Disney again I'm not telling you what to
2:47 buy just giving you examples the
2:48 advantage of these type of blue chip
2:51 stocks is that it's harder for these
2:52 type of companies to just completely go
2:54 away and because of that you're also
2:57 gonna see probably slow or instead your
2:58 growth so if you're trying to see
3:00 quicker growth then you might want to
3:02 look at the adding some growth stocks
3:04 into portfolio growth companies are your
3:06 smaller startup type companies that
3:08 usually don't have any profits because
3:10 they're taking every extra dollar they
3:12 have and reinvesting it back into their
3:14 business so you can kind of think of
3:17 like Amazon 10 years ago or Starbucks
3:19 before there was a Starbucks on every
3:20 street corner
3:22 just remember bigger potential upside
3:24 comes with more risk - I mean before
3:27 Amazon last the people thought that eBay
3:28 was gonna be the next big online
3:31 retailer if your goal is to have passive
3:32 income then you should be looking for
3:34 companies that have strong and healthy
3:36 dividends which are regular cash
3:37 payments you get just for owning a
3:40 certain company and for this you might
3:41 want to consider looking into things
3:43 like REITs real estate investment trusts
3:45 so you can think of active investing
3:46 kind of like trying to find the best
3:48 companies and funds to invest in that
3:50 are giving you the best deal passive
3:52 investing on the other hand not to be
3:54 confused with passive income is a little
3:55 bit different tasks of investing
3:57 requires almost no upkeep on your end
3:59 because you're just gonna have a few
4:01 funds or stocks that you want to invest
4:03 in and then every week or every month
4:05 you're just gonna add more money into a
4:08 portfolio and that's it by the way these
4:09 funds that I'm talking about
4:11 they're called ETFs and you can think of
4:13 an ETF for these funds kind of like a
4:16 big group of companies now instead of
4:17 you trying to go out and find the best
4:20 company to invest in you can invest in a
4:22 group of companies so a couple examples
4:25 of ETFs would be like vo o and SP why
4:27 these two
4:29 funds will give you exposure to the top
4:32 500 companies in the S&P 500 or the top
4:35 500 companies in the stock market there
4:37 are ETFs out there for everything real
4:39 estate companies blue chip companies
4:41 growth companies international companies
4:44 you name it this is truly a passive
4:46 investing strategy because once you know
4:48 what three to seven funds or companies
4:50 you want to invest in all you're gonna
4:52 do is keep funding your investments on a
4:55 regular schedule so maybe every Monday
4:57 you're gonna add another $100 or every
5:00 month you're gonna add in another $2,000
5:01 into your investment portfolio you're
5:03 not trying to time the market now
5:04 whether things are up or down you're
5:06 just gonna keep following your schedule
5:08 week after week and month after month
5:10 and just keep making your investments
5:12 for the long term the easiest way for
5:14 you to manage your money and your
5:15 investments is to use a financial
5:18 services app like a sponsor stash who
5:19 wants to help you manage your money
5:21 easily like if you're looking for an
5:23 easy way to passively invest your money
5:25 stash can do that for you just set your
5:26 schedule how much money you want to
5:28 invest and you're good to go plus stash
5:31 lets you invest in fractional shares so
5:33 let's say you want to invest in Amazon
5:35 stock which might cost a couple thousand
5:36 dollars but you don't want to put two
5:38 thousand dollars into one stock well
5:40 let's - you could follow your schedule
5:44 and invest as little as $1 a day or $5 a week
5:44 week
5:46 find these fractional shares because -
5:48 lets you invest with as little as just
5:50 $1 a means a set of buy the whole share
5:52 you can just buy a piece of a share but
5:54 stash is more than just an investing app
5:56 because they have a banking feature to
5:58 help you manage your money and get paid
6:00 up to two days early plus if you use the
6:02 stash debit card to make it purchases
6:04 then you can get paid with stock back
6:07 that means if you go shopping at Walmart
6:09 and you check out with your stash debit
6:11 card then stash will give you a little
6:13 bit of Walmart stock and no additional
6:16 cost to you you can use stash to manage
6:17 your money and start investing for as
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6:30 is sign up for stash using our link in
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6:38 stash will give you $15 to start
6:40 investing so if you wanna learn more you
6:40 can use our link
6:42 in the description below or go to stash
6:45 down app and enter in a promo code June mindset
6:46 mindset
6:48 you've probably heard something along
6:50 the lines of 90% of investors lose money
6:52 but have you ever wondered why it's
6:55 because most people invest on emotions
6:57 not financials when people hear that a
6:59 stock or an investment has been rallying
7:01 they get very excited and that's when
7:03 the media comes out and they say that
7:06 this dog is unstoppable and then people
7:07 go and they look at the stock chart and
7:09 the same wow this stock has pretty much
7:12 gone straight up and to think if it
7:14 keeps going up at this rate I'll be rich
7:16 in no time this is one of the biggest
7:17 mistakes that people make when it comes
7:19 to investing it's called a hot hand
7:21 fallacy because people think wow so I've
7:23 been making so much money with this
7:25 investment that means it's more likely
7:28 for this investment to keep going up but
7:29 the past performance of something
7:31 doesn't predict its future performance
7:33 eventually what happens there's people
7:34 who own the stock or investment early
7:37 realized wow we're making so much money
7:39 maybe we should take some of our profits
7:42 off of the table and this brings the
7:43 investment down just a little bit and
7:45 now people get worried and they get
7:47 panicky and let's start selling which
7:48 brings this investment down even more
7:50 then if people realize that this
7:52 investment was overvalued then emotion
7:54 kicks in and you start to see this panic
7:56 sell and this investment comes crashing
7:58 down if you want to succeed as an
8:00 investor you need to remember one that
8:02 you're in this for the long term and two
8:04 you're in this for the long term so if
8:06 you're investing in a company that has
8:07 good fundamentals and it has good
8:10 profits and it has cash on hand and it's
8:11 gonna be needed in the future and the
8:13 price of this investment gets hurt you
8:15 shouldn't be panic selling you should be
8:16 panic buying that's the interesting
8:18 thing about economic slowdowns and
8:21 crashes is because strong companies are
8:23 gonna get hurt just because the overall
8:26 market is hurt until this pandemic goes
8:29 away our economy is gonna be I don't
8:31 know the perfect word weird states are
8:33 opening back up in different phases
8:36 we're seeing an unprecedented amount of
8:37 money being printed then it's gonna have
8:40 long-term consequences on an economy and
8:43 to top it all off we have a presidential
8:45 election coming in November that means
8:47 you active investors are gonna have to
8:49 work extra hard to filter out all the
8:51 emotions and continue to invest
8:53 financially and that also means that sometimes
8:54 sometimes
8:56 things are not gonna make any sense
8:58 hello everybody we have breaking news it
9:01 looks like bunty's clothing stores on
9:03 the verge of bankruptcy and their stock
9:07 stock is up 20 percent we've seen
9:09 companies can completely shut down and
9:11 then their stock barely move because
9:13 they got a whole bunch of help from the
9:14 government and the Federal Reserve aka
9:17 free money we've seen multiple times a
9:20 horrible jobs report come out and then
9:21 the stock market rally and then we've
9:24 seen other companies not get financial
9:26 help and get pushed into bankruptcy so
9:27 there are a lot of wild cards out there
9:29 which is why it's even more important
9:30 for you to pay attention to what's
9:31 happening in the finance and business
9:33 world but if things don't make sense
9:35 don't get angry just do what I do need
9:37 some guacamole and for you passive
9:39 investors out there the hardest thing
9:41 for you is gonna be sticking with your
9:43 strategy remember if you are a passive
9:45 investor you are not trying to time the
9:47 market or find hot deals your goal is
9:49 just to stick with the strategy and keep
9:51 investing money into your funds or your
9:53 stocks week after week and month after
9:55 month that's it if you're past limit
9:57 investing you shouldn't even worry about
9:59 the daily swings the only time you
10:00 should ever really consider panic
10:03 selling is if a company you're invested
10:05 in is seriously on the verge of
10:07 bankruptcy when a company goes bankrupt
10:08 there are a couple things you need to
10:10 know and I can tell you this because I
10:12 am a licensed attorney however I am NOT
10:14 your attorney so if you have specific
10:16 legal questions talk to a legal
10:18 professional in your area first you need
10:20 to know what kind of bankruptcy this
10:22 company is filing if they file a chapter
10:25 7 that means the company is done for and
10:27 your investment has no chance they're
10:29 coming back if they file a chapter 11
10:32 bankruptcy that means that your company
10:33 is restructuring and there is a small
10:36 chance that this company will come back
10:38 but right now your shares are
10:41 practically worthless second you need to
10:42 know what happens during this bankruptcy
10:45 when a company files for chapter 7 they
10:47 are going out of business so they're
10:49 gonna sell whatever asset they can
10:50 because they are shutting their doors in
10:52 this case the company's gonna take
10:54 whatever cash they can get from selling
10:55 their stuff so after selling their real
10:57 estate and their desks and all their
10:59 other assets they're gonna first have to
11:01 pay off their debt holders usually the
11:03 banks and then if there's anything left
11:07 which is almost always never then they
11:08 will pay this money to the
11:10 shareholders win the company files for a
11:12 chapter 11 they're trying to stay in
11:13 business but they're gonna restructure
11:15 their business in this case the company
11:18 is going out making deals with banks and
11:19 lenders trying to see if they can get
11:21 out of certain debts and see if they can
11:23 raise cash from somewhere else and
11:25 during this stage most of the time your
11:26 shares are gonna be essentially
11:27 worthless and now if you're thinking
11:30 wait but what if my company comes out of
11:31 bankruptcy even stronger than before
11:34 well you still might not get any of the
11:36 upside many times if a company does come
11:38 out of bankruptcy they will issue new
11:41 shares and a new stock which would make
11:44 your old stock worthless when GM went
11:46 bankrupt during the 2008 crash you might
11:48 have owned some of their stock well a
11:50 little time after going bankrupt GM came
11:53 back to life and they issued new GM
11:54 shares so the people that were holding
11:57 the old GM shares were left with nothing
11:59 and now there's a new GM stock once in a
12:01 while you will have situations where
12:03 people holding shares of a bankrupt
12:05 company will get something but I
12:07 wouldn't count on that when the 2008
12:10 crash happened 41 public companies filed
12:14 for bankruptcy and by 2010 only four of
12:16 those companies gave anything to their
12:18 shareholders the reason this is so
12:19 important right now is because when we
12:21 are in a recession or an economic
12:23 slowdown companies will go bankrupt
12:25 we've already seen it happened quite a
12:27 few times so when you're making your
12:28 investments you really want to factor in
12:31 how much risk is involved because higher
12:33 risk comes with higher stakes now now
12:34 this doesn't mean you shouldn't take any
12:35 risk or that you shouldn't invest your
12:37 money this means you need to know how
12:39 much risk you're willing to take know
12:41 what your strategy is apply it and go
12:43 for it this is what financial education
12:44 is all about [Music]
12:46 [Music]
12:48 you enjoyed this video share with one
12:49 friend that way you can help spread the
12:51 word if you all learned more bhai can
12:53 find a strong company to invest in on
12:55 the stock market I already made a video
12:56 on it and you can watch this video on
12:58 YouTube by clicking this button right
13:00 over here thank you for watching it as
