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What you’ll learn today:
The difference between a market crash & a recession
Why recessions are important
How to prepare for a market crash
How to make millions during/after a market crash
I believe the market will crash in the next 6-24 months,
and with the tools I’m going to present today you will
be able to capitalize on the chaos & make millions
My market crash philosophy
•Chase your next 0
•Recessions are a good thing for the marketplace
•It’s the Best time to build wealth
•Only the prepared will prevail
HOW I capitalized off market crashes
• 2001 dotcom bubble
• I got started in the financial industry on 9/10/2001
• worst time to start at Morgan Stanley
• Before the next recession I had made My first $100K
HOW I capitalized off market crashes
• 2008 recession
• This time I had made money and saved $500,000
• PHP Agency got started on October 20th, 2009
• Insurance companies had nothing to lose
• Grew this from 66 agents to over 20,000+ Active licensed
agents today
• Before the next recession I had made My first $1M
HOW I capitalized off market crashes
• 2020 Covid Market Crash
• Financial Assistance?
• Face to face 99% of salesà zoom sales 1%
• Within months this flipped to
• Face to face 90%
• Zoom sales 10%
• I bought two baseball cards for 540K and sold them for 2.1M13 months later
• I moved From 6 figures, to 7 figures, to 8 figures, to 9 figures
How concerned should you
be about the economy?
Here’s what Elon musk has to say
Here’s what jamie dimon has to say
Here’s what Billionaire Carl Icahn has to say
Here’s what Billionaire Leon Cooperman has to say
Here’s what Charles Scharf has to say
Here’s what Former Fed president Bill Dudley says
Bill Dudley, former president of the federal reserve of New York
Should we be concerned about a market crash?
•75% of Fortune 500 CEOs said this month that
they were bracing for a recession.
•It’s an anticipation game
•What are you doing to prepare ?
What is a market Crash and recession?
• Recession:
• “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.”
• Stock market crash
• “A stock market crash is a sudden dramatic decline of stock prices across a major crosssection of a stock market, resulting in a significant loss of paper wealth. Crashes are driven
by panic selling and underlying economic factors. They often follow speculation and
economic bubbles.”
2022 Economy forecast
•Q1 of 2022 the American economy shrank by 1.5%
•Q2 ends on June 1st -this could be the day America
officially enters a recession
What happens During a recession
• Companies go out of business
• Employees get let go
• Borrowing money becomes harder
• Consumer spending decreases
• Stock market goes down
Here’s a visual
Have you ever been in a forest?
Today’s economy is like a very dense forest
• There are a few big trees that catch all the sun and rain
• A few big companies that hire most of the good talent
• It’s hard for new younger trees to grow up
• The big companies buy out or crush the competition
Market crashes are like forest fires
The economy and forests have cycles
• Natural fires in this ecosystem usually occur in
5 - to 10 -year cycles.
• U.S. economic cycles have lasted about five and
a half years on average since the 1950s (in
recent years we’ve seen closer to 10 year
cycles)
Market crashes are like forest fires
Why recessions are a good thing
• Bad Companies go out of business
• Room for new companies to grow
• Starts a decade or so of growth
• No more overpriced talent
• Access to talent previously unavailable
Here’s what is happening today
• Inflation hits 40-year high of 8.5 percent
• Gas prices jumped 48 percent year over year
• rental rates have increased for eight consecutive
months
• The average rent for a two-bedroom home in the U.S.
is about $2,000, according to research from
Rent.com — up by 22 percent year over year basis.
• Groceries are up by 10 percent year over year
S&P 500 performance year to date
Nasdaq performance year to date
Apple performance year to date
Facebook performance year to date
Netflix performance year to date
Amazon performance year to date
Google performance year to date
tesla performance year to date
Bitcoin performance year to date
My Goldman Sachs advisers have told me
When the Federal reserve raises interest rate
2 times in quarter, historically there is a 60%
chance of recession within next 18 months
How bad will things really get?
• Things to keep in mind:
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Fake success
Political uncertainty (midterms and war in Ukraine)
Inflation
Small businesses haven't overcome COVID and will now face a much bigger challenge
• The economic expansion after 2020 was pumped up fake success
• The next crash could be a dotcom bubble crash on top of the 2008 recession
• “The farther back you can
look, the farther forward
you are likely to see.”
Top 10 worst market crashes in US history
10. COVID 19 Pandemic - Feb 19, 2020 - Mar 23, 2020
• The market dropped 34%
• Duration was 33 days
Top 10 worst market crashes in US history
9. Computer trading - Aug 25, 1987 - Oct 19, 1987
• The market dropped 36.1%
• Duration was less than 2 months
Top 10 worst market crashes in US history
8. Dotcom bubble + 9/11 - Mar 10, 2000 - Oct 2,2002
• The market dropped 36.8%
• Duration was 26.8 months
Top 10 worst market crashes in US history
7. WW2 crash – Oct 1939 - Apr 28,1942
• The market dropped 38%
• Duration was 32 months
Top 10 worst market crashes in US history
6. Panic of 1907- Jan 1907 - Nov 1907
• The market dropped 40.4%
• Duration was 11 months
Top 10 worst market crashes in US history
5. Continuance of great depression - Sep 7,1932 - Feb 27, 1933
• The market dropped 40.6%
• Duration was 5.75 months
Top 10 worst market crashes in US history
4. Usd off gold standard, Watergate, opec - Jan 11, 1973 - Oct 3, 1974
• The market dropped 48.2%
• Duration was 20.7 months
Top 10 worst market crashes in US history
3. Great recession - Oct 9, 2007 - Mar 9, 2009
• The market dropped 54.1%
• Duration was 17 months
Top 10 worst market crashes in US history
2.New deal programs were cut & taxes increased - Mar 6, 1937 - Mar 31,
1938
• The market dropped 54.5%
• Duration was 12.8 months
Top 10 worst market crashes in US history
1. Great Depression - Sep 3 1929 - Jul 9, 1932
• The market dropped 89.2%
• Duration was 34 months
American economic Expansion cycles
• WW2 - 6/1938 – 2/1945 (81 months)
• Vietnam war era – 2/1961 – 12/1969 (108 months)
• Reganomics/cold war – 11/1982 – 7/1990 (93 months)
• Tech bubble – 3/1991 - 3/2001 (112 months)
• Us housing bubble – 11/2001 – 12/2007 (74 months)
• Covid pandemic – 6/2009 – 2/2020 (128 months)
• Post Pandemic – 4/2020 – (24 months)
Companies that started During economic downturns
• General electric got started in 1908
Companies that started During economic downturns
• Hewlett-packard got started during the 1937-28 recession
• Fear of WW2
Companies that started During economic downturns
• Hyatt hotels got stared
during the 1957-58
recession
Companies that started During economic downturns
• Microsoft got started
during the 1973-75
recession
Companies that started During economic downturns
• uber, slack and Airbnb all
started after the great
recession crash in 2008
Why recessions are a Good time to start your business
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Less competition
All in mentality
Access to talent
Talent is priced at the real market value
Better rates (rent, vendors, etc. )
8 steps to prepare for the market crash
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anticipation
Risk tolerance
Carry cash – cash is king
Avoid major real estate deals
Have a serious business plan in place
5% Precious metals
Protect your career
Take a timeout and study your portfolio
10 steps make millions during a market crash
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Monetize fear
the lazy, arrogant & Overleveraged will be filtered out
Become bankable
Strength in numbers
create a cause your company can rally behind
Cut the fat
find your running mates
Double down on positive distractions
Equip your team with all possible audibles
Increase your level of urgency
One last piece of advice
Don’t go about this alone
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