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