If i told you we're on the edge of a recession dip after dip after dip and then gave you a look inside my businesses, it's costing me more than ever to get hold of. That would lead me to retracing my steps during the 2008 financial crisis. It was a huge shock to the system when the crisis hit in 2008, allowing us to find out whether this is a spiraling nightmare or the financial opportunity of a lifetime hi guys it's mark so you're an investor and you're on a mission to find the best Place to put your money and increase it over time, where are you putting it? Well, things aren't looking good. This is how rocky the stock market was in the first quarter of 2022 dip after dip after dip, it's like being on a roller coaster, only less exciting.

This is actually the worst start to the stock market in more than 80 years, but that's just a graph. What this really represents is thousands of people, just like you and me having their investments battered almost every stock is down, which means every day we're just staring at a sea of red, hoping that things will go back to the days of positive returns. So maybe the stock market isn't the best option for your money. However, neither is keeping all your money in your bank account as we're facing extremely high levels of inflation.

The government says this is at 8.5, but in all honesty i think it's much higher. On top of this, putin has decided to invade ukraine, leading to a devastating war and a squeeze on global supply chains. This has a side effect of making certain commodities like oil, more expensive, meaning filling up. Your car is hitting your wallet like never before this is causing you to have less money that is quickly becoming even less valuable by the second.

This pressure on finances has brought to the surface a common fear of a looming recession and it's fast becoming a reality for the first three months of this year, economists assumed we would grow by 1.1, but what actually happened was far worse. We saw a 1.4 decline, which means we're halfway towards a recession. This means, if you put money into stocks, bitcoin and even your bank account you're, probably going to lose money at the moment. Honestly, i can see why you would think that this mission to find the best investment is pointless, as you seem to be just throwing your money away.

This thinking has led to a general loss of interest in the space, but could this be the perfect opportunity for you to make your millions? Let's take a closer look? The stock market is now down 21 worst day on wall street, since the crash of 1987. The most serious recession in decades we're now down 43, but first i'd like to thank today's sponsor public.com public is an investing platform that i've been working with for almost two years. Now that helps people be better. Investors on public members can invest in stocks and etfs to build a modern, diverse portfolio and even if you're, not sure what exact stocks to invest in with public, you can explore themes of stocks like sports, green power and even the metaverse.

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This gives me a unique perspective on supply chains and customer demand, which could be early indicators of a coming financial collapse. Sure you could look at indicators like the consumer price index, but these are heavily influenced by governments and it's very easy for them to manipulate the figures and lie to us. However, one thing they don't have control over is my businesses. So, let's look at how i was affected in 2008 and compare them to the problems i'm facing now.

By doing this, we should be able to get a better idea of the true financial situation we're facing. So, let's follow the journey of this model plane that was designed by me and is sold all over the country. So all the products we buy start in the form of raw materials, and it's exactly the same for my model aircraft as we use plastic wood and also electronic components. So knowing how raw materials of price is important, as it has a direct impact on our wallets.

When the 2008 financial crisis hit, the manufacturing sector suffered severe consequences, industries such as machinery, metals and transportation equipment had huge drops in customer orders by up to 42 within a single year as supply and demand have an inverse relationship. This meant that the cost of my raw materials actually decreased in 2008, as they were eager to sell to anyone that had the money to buy. However, in 2022, the raw materials market is under considerable strain. It's costing me more than ever to get hold of the raw materials that are required to produce my products.

This is because market demand is still high and when this is coupled with reduced supply, this continues to keep material prices at rates never previously seen globally. One of the raw materials i require to make this model aircraft is balsa wood. The issue is it's in extremely high demand, and one of the contributing factors is that it's being used in wind turbines. It's even got to the stage when i've had to put my customers on a three-month waiting list.

This is just one example of how increased raw material cost is impacting the everyday person, so once the product has been produced, it actually has to get to me, and this is where supply chains come into play now that our everyday products come from all over the World supply chains affect us more than ever on the run-up to 2008. Things were going great and the economy was booming during times like this factories really ramped up their manufacturing capacity by investing in more equipment facilities and workers in order to meet the demand. This leads to supply chains, accelerating costly transport being accepted and large batches being produced, because the goods will be sold at some stage. It was a huge shock to the system when the crisis hit in 2008 and supply chains had to totally re-evaluate their business models.

Due to the lack of demand, nobody seemed to have any money which led to shrinking customer orders, increasing competition and a decrease in margin for the manufacturing industry. However, 2022 is completely different. This is because of the pandemic. We saw a complete slowdown in our actual supply chains and they're still not back to full capacity.

This means that demand far outweighs supply. Therefore, shipping this product and many others from china is getting more expensive ships that used to take four weeks and now taking six. A big reason for this decrease in speed is the rise in oil prices, as container ships can save up to 25 of their fuel cost just by going slower. The last container i got into my warehouse cost me 17 000 to ship, which is absolutely insane as pre-pandemic.

It cost me four thousand five hundred dollars. That was the best price i ever got, though, once this product reaches me, it has to be handled by my warehouse team. This obviously has a lot of costs involved with it during times of recession, most businesses are looking to cut costs, and this is when people lose their jobs in 2008. I was mostly concerned with my rent prices.

This is when i made the decision to buy all the buildings my businesses now operate from, so i no longer have to worry about landlords, increasing my rent and squeezing my profit margins in 2022. I am even more focused on cutting costs. Recently, i changed all my light into led, so i can save on increasing electricity costs. I've also implemented automatic lighting, so the lights aren't left on unnecessarily, as more people lose their jobs due to cuts.

This causes the economy to grind to a halt, as people have less money to spend. That brings us on to the final trip for this product and that's when someone buys it and takes it home. This can happen in store or via the internet when less people are buying products, it decreases the gdp which pushes us into a recession. If growth is negative for two quarters in a row in 2008, well, 2010 is when it really impacted me.

Demand was extremely reduced. Due to most people being low on cash, whereas now it seems like people have more money, but supply chain issues and worries about the recession are causing the main problems. I have huge demand for products i can't get but lower demand for products i have so, as we can clearly see, history is not repeating itself. This recession seems like something completely different than before, but the real question is: is there an opportunity for you to profit? Well, i've got some good news and some bad news about whether or not this is the financial opportunity.

You've been waiting for the good news is. History has shown that the u.s stock market recovers after a decline and investors that have stayed in the market for the long term have benefited the most from the recoveries it's a bit like in february and march 2020, when the pandemic first got real. Imagine selling here right at the bottom, through fear of what was to come only to have the price rebound and soar to new heights. In the space of only a few months, i'm like a squirrel during market declines grabbing as many acorns as i can, and hoarding them, through the winter as buying low, is where the real money is made and, let's be honest, the recession doesn't always mean a decline In the stock market, you can't time the market, but index fund investing and picking the right defensive companies has always been a great strategy that i've used in the past.

Now the bad news is historically, the stock market takes anywhere from six months to two years to recover from a recession which really isn't good for psychology when investing consistently. This could also impact you more than most, if you're on the verge of retirement and can't weather two years of no returns and, let's not forget not, every company makes a swift recovery and some never bounce back at all. Overall, i think job security is really important to ensure a constant, reliable income. Extending your emergency fund from three to six months or maybe even more - should stop you from having to sell your investments at a loss.

Should you hit financial difficulties, i've personally tweaked my investment strategy ever so slightly to include more recession-proof businesses in industries, as well as consistently investing into index funds. Investments like crypto just don't have enough historical data surrounding them to make an educated guess on how they'll hold up during a recession. But bitcoin and other crypto coins have been closely following stocks lately and could follow a similar course when buying crypto make sure to use the ftx app as they give you free krypton every trade over ten dollars, which is really helpful at the moment. That's for sure.

So i'm going to leave the next video right up there, but don't click on it just yet make sure to subscribe. If you want to grow your wealth, okay, i'll see you over there.