Hey everyone meet kevin here in this video, i'm going to provide some suggestions for getting through the pain of this recession and market crash. Because look folks, here's the thing, there's no questioning it! Our markets are in correction, the s p 500, just crossed into the correction territory down 22 percent year. To date, things have just gotten worse: nasdaq technology down 31.23 percent year to date, tesla ford down 44 apple down 27 and speculative assets or recent ipos, be it crypto, robin hood, coinbase, they're down 60 to 80 percent. Folks, if you are suffering in this market, we're all suffering right now, i'm down a lot and it sucks.

For example, tesla is down 400 million dollars on just their bitcoin position and elon musk isn't in the 200 billion dollar club anymore, he's lost that status. Square's lost, like 42 million on crypto microstrategy's, down like 1.1 billion on crypto and, at the same time, 30-year mortgage rates in america that one place that's been holding out. Making us think that oh well, at least real estate hasn't corrected yet is about to, especially since this is the chart of the 30-year mortgage rate now at 5.87 percent on an index, which means those who are actually qualifying and getting pre-approved are likely getting pre-approved for. Between 6.2 to 6.5, folks, that is nearly 4 percent higher than where we were in december.

So how are consumers responding well, they're, taking on more debt, consumer debt has risen to the highest level, the highest level of increases that we have seen since we started tracking consumer debt in the late 80s in just the last two months being devastating total revolving credit? Has never exploded this high as it has in the last two months, and we have an average of 25 more margin debt than we did just two years ago. A personal savings rate at the same time, down to 2008 levels, we're now saving less than five percent of our incomes, which is no surprise when interest rates on anything from credit cards to student loans to home, loans to car loans are skyrocketing and the pain is Being felt by everyone take a look at this: here's a chart of six figure earners in the united states if they're feeling the pain we know, lower incomes are also suffering 63 percent or six in 10 millennials making between 100 to 150 000 per year reported now Living paycheck to paycheck, that's crazy. Six figures used to be the gold standard, and now six and ten millennials are living paycheck to paycheck in this threshold, and it's not just them. It's even 49, so half to 55 percent of millennials, making more than 150 000 per year, also reported living paycheck to paycheck and boomers, who had been making six figures plus for decades.

Potentially one in four to one in five of them are also living paycheck to paycheck. If we look at the bottom quintile of earners, the bottom 20 percent of earners have less money than they did in 2019 and folks. This chart here is as of december of 2021. That's before we went through five to six months of stock market hell and insane inflation.

The bottom eighty percent of americans barely have more cash than they did in 2019 and since this measure was taken in december of 2021, we could assume that right now, a lot of that excess cash is just straight up gone. So it's really unshocking that consumer sentiment has now crashed to the highest level of negativity. We have seen since 2008, with more people now reporting that they feel negative about economic and future conditions than positive. That's right! We have flipped more people are now negative than positive.

In the consumer sentiment survey, but then again, how could we not have negative sentiment when we're at 40-year highs with an inflation disaster? The ukraine crisis, leading to food and energy shortages and new fears that china is aggressively conducting flyovers over taiwan even reportedly buzzing canadian planes raising concerns that putin's war in ukraine will encourage other countries like china to invade taiwan and other countries to nuclearize and get aggressive. As well so again, where can we go to know that we feel like crap? Well, we could look at real estates of gdp. Real estates of gdp now close to zero percent, meaning our economy is stagnating. Yield curves are inverting again, meaning the bond market is predicting a recession within the next year.

Quite frankly, we might already be in one and of course massive inflation. Quite frankly is no surprise, since we printed five trillion dollars since the start of the pandemic. That's 30 percent of the money that we have in circulation and, quite frankly, there's a reason why the pandemic was the shortest crash that we've ever had, because we had a big fat money printer to bail us out, which we don't have today. So when retail stores are telling us that their inventories are now skyrocketing, that inventories are up 130 at crocs over a three-year average that amazon has 77 more inventory.

The target has 61 percent more inventory that home depot has 53 more inventory. It's no surprise, because people have decided to stop spending money because they don't have any left and that's why buying. The dip has also started to dry up. Retail inflows into the stock market are finally starting to slow down, and the question now is: will the stock market bottom around the same time as retail investors say enough? Is enough it's time to capitulate, and so, where are people making money today? Well, the people making money today are the ones shorting.

The market sqq, which is the triple short nasdaq, is up 122. The short arc k etf s arc is up more in the last seven months than kathy woods. Arc fund has been up in the last five years combined. Big five has a 44.8 short interest ratio.

Camping world is at 43.9 percent short and bed bath and beyond, sits at roughly 30 short investors realize that the spending days are over, but the last place people are still spending money is in the place that we just don't have the capacity to actually support it. Air travel. We don't have enough air traffic controllers, we don't have enough pilots, we don't even have enough planes to service the amount of people who want to fly so really once again and take a shot. Every time i say it's unsurprising, but it's unsurprising that airfares rose 18 in one month in april, which is over a 200 inflation rate annualized and another 12 percent in may.

That's insane at some point. Even wealthier, consumers are going to either be out of money or they're going to be unwilling to spend, especially if we get those cracks in the real estate market that we're expecting with real estate rates. Now four percentage points higher, i'm unsurprisingly expecting the real estate market to correct and if the real estate market corrects potentially as much as 20 to 30 percent. We expect people to spend even less money, especially on construction and places like home depot, lowe's and travel, because some of the wealthiest people that we have in america are landowners.

It's one of the best ways to build your wealth, in fact, folks. This is why i have a program on how to build your wealth by investing in real estate. You can become a millionaire investing in real estate and we have a crash opportunity coming up. This is why i absolutely recommend you check out the links down below for the programs on building your wealth, especially that zero to millionaire real estate investing course.

But i have some free suggestions for you here, and these are not financial advice for you, but i want to help you become a survivor, so the very first step is, i highly recommend you subscribe to the channel stay up to date with the latest market news And, as i see things changing in the market, i can tell you about them. It doesn't mean that you need to change your portfolio every single day, but it does mean that you can be aware of what's happening before regular people in america realize it, and you can be one of the survivors, the more informed you are, the more likely it Is that you can be a survivor, so what are the steps to survival? Well step number one be patient, so here's the thing about patience, folks take a look at this chart. It's all about. Recessions, see the blue line.

That's the s p 500 right now, and it's laid over bear markets going all the way back to 1929 when there was no recession, but we had a bear market in the stock market. We see the gray line over time. That is days before and after a peak prior to the bear market right. So basically, what you really want to know is that we're the blue line and we still have the gray or the black line ahead of us and the big difference to determine if we've hit bottom or not, is whether or not we're actually going to have a Recession, see if we don't have a recession, we could potentially at least comparing to history, be at a bottom now, that's because you could see the bottom of that blue line is lower than the gray line's lows.

However, if we do end up having a recession, we could have multiple more lows ahead of us even with some bull traps. That is, bull runs in between maybe lasting anywhere between three weeks to six weeks. So this is very important to keep in mind, but it's not just that. Look at this.

The s p's bear market durations have an average, but it's not just this when, but it's not just this ignore the recession. For a moment, if we take a look at bear markets in general, the median recession time is eight months. No, but it's not just this. Take a look at bear markets in the s p 500.

The average duration of bear markets is 11 months. We've only been in this for five months so far take a look at this crash in red compared to all of the other lengths of bear markets, and this is why we have a median bear market time of eight months. So buckle up for more pain and again, don't think about the bailout that we got in march of 2020 sure with the covet crash. It took us 103 days to recover, but the great financial crisis took a thousand and nine days to recover and the dot-com bubble took us one thousand one hundred sixty-five days to recover.

The recovery from coven was a total fluke and so far we've been at a 111 days of pain so far and we're not even starting the recovery day time frame yet because look at that great financial crisis had pain of 352 days dot com bubble had pain For 638 days, we're a baby bear market with a long way to go, but look sometimes these are opportunities. In fact, a fed u-turn, oftentimes marks the best time to invest. Now, who knows some say that this could be a different time that this time could be different, and the true bottom will come before the federal reserve switches to accommodation, potentially in late 2023 or in 2024, but then again the most dangerous words investing or historically this Time is different: instead, you should be prepared for being extremely patient before the federal reserve even remotely becomes accommodative. So don't get too optimistic on green days and don't get too pessimistic on red days.

Patience is going to be key for investors for all of 2022 and likely a lot of 2023 and see the next most important step. This is step. Number two is literally surviving the market. The most important thing here is not losing your money and realizing massive losses.

Let me show you why let's say you invested a hundred thousand dollars for 40 years and let's say you invested that at five percent per year investing in index funds and you didn't care if the stock market went up or down you just held through it all At five percent per year, and then you compared your returns to somebody else, making ten percent per year, because maybe they're a really good stock picker. But for 40 years you held taking an average of 5 per year through good times and bad. But the other person who doubles your returns almost every single year for the next 40 years and doubles your returns for 38 out of 40 of those years with a 95 success rate ends up losing money in just two years year, 10 and year 20. On a 40-year horizon, they take a 60 percent loss in their trades.

That means you are steady. Yeti 5 averaged out over time, 40 years. If you go 40 40 years back stock market on average returns 7.9 percent, not even considering dividends. You go forward assuming just five percent through good times and bad without selling.

You ended up doing substantially better than the person who actually had a 10 return, doubling your performance 95 of the time, in fact, that 100 000 would have grown to over 650 000. For the person who had just a 5 percent return over 40 years and the person who had double that return had between 15 to 20 percent, less money than the patient investor, who wasn't the trader, trying to double the return of other people? Those two loss years cost them long-term outperformance over 40 years, and so this is why patience is so important and staying out of debt and margin, debt and credit card debt is critically important. See the pandemics taught us something very important that there's no such thing as job security. People said there was job security working for the police department and then defund the police happened.

People said there was job security for cutting hair, and then the pandemic happened and people cut their own hair folks, you should never ever get complacent with your job, and this psychology is very important because it keeps you out of debt and that staying out of debt Helps you be that survivor who can patiently survive through the hard times if you're in debt, you should be motivated to get out of debt as soon as possible? I mean credit cards margin, debt, car loans and anything that lowers your ability to build your wealth fast track, paying these off and get out of debt. This is what it means to be a survivor and folks, that's just step, two being a survivor getting out of debt, making sure you have the realization that your job is not permanent and, of course, making sure that you are patient, because this is the time to Be patient and the example i gave shows you exactly: why don't be a loser in the hard times next step, get educated, do what you can to better yourself, professionally delay retirement? If you have to this is the time to try to make hay. This is the time to take on the other job and work. Hard get educated, get a license, become a licensed real estate agent people need your help more than ever.

Now. People need your financial suggestions more than ever now, if you can become a series 65 licensed financial advisor, a registered investment advisor become a cpa, help people make money by preserving their wealth, because if you can start in a new industry at the bottom of the market And you become a survivor during the tough times you can win big during the easy times. Anybody can make money in a bull market. If you can help people make money and save wealth during a difficult time.

You're, a hero, who's always going to make it, and this is why, if you're thinking about oh, i don't know, is now a good time to become licensed or to become a coder or go to a coding, boot camp or whatever. Absolutely now is the time to double down and make more money than ever before and step number four folks concentrate into cash and your highest conviction investments. Now this is different for everyone. So it's not financial advice.

I give a lot of suggestions, but i can't give you financial advice because i'm not a financial advisor and i don't know your situation and i've got lots of suggestions. This is why i have programs on building your wealth link down below they're 50 off now, the largest discount that we've had. So that way, you can take advantage of everything that we know, especially about building wealth through real estate, which is our most popular sales program. Right now, but take advantage of that coupon code because it is expected to expire within the next week, so check it out, link down below, but folks, cash is really important.

Right now, folks like to say that oh well, cash gets eaten away by inflation. No, it doesn't. Cash only gets eaten away by inflation, to the extent that you need that cash for groceries and energy like gas or travel expenses. But if you have cash available for investments and investments like assets are getting less expensive because real estate prices are falling or stock prices are falling, your dollar is actually building wealth, not losing wealth, and so remember.

Folks cash is a great opportunity and concentrating into your highest conviction. Investments will help you become more patient, some people say now's the time to diversify. I personally highly disagree with that. I think you bet on train america, you bet on the american recovery and if you have high conviction names that you want to bet on within that you do so, but you bet on the best american real estate, the best american companies in america in general.

I don't personally think diversifying in down times is the best suggestion, but folks everyone can have a different opinion on this, and these are my suggestions and your urgent warning for this recession or potentially upcoming depression. Now just a side additional note for those of you still watching at this point, i just want to mention that when lauren and i bought our first home in the bottom of the real estate market in 2010 to 2011 folks, everybody around us told us it's a Terrible time for real estate, this is the worst time to buy real estate. Oh, i feel sorry for you. Oh my gosh.

This is terrible, stupid, stupid, stupid. Don't listen to other people! Listen to yourself and if you feel like something, is a good deal and there's a good opportunity, whether it's in stocks today or maybe in real estate or in a year or two from now, when we start seeing an increase in potentially job loss and foreclosures. Folks get ready, that's my best suggestion for you and i wish you the best, because we are doing exactly that: we're getting ready to buy real estate, we're buying stocks today and we're going to be buying real estate in the next two years, because we've already sold Our real estate at what we think is the top and we're excited for an opportunity to get back in soon. Thanks for watching folks and we'll see you soon,.