The Single Best (Only?) Hedge Against the Recession/Crash is This

Welcome back to another episode of the Money podcast with your host Rob Moore. In this episode, Rob talks through the steps that you need to take to ride out the next recession. There is talk of a recession in the not too distant future, the property market that might crash and of course the uncertainty over Brexit. Rob gives you the single best way to ride out the next recession whenever it might happen.

Key Takeaways

Single Biggest Hedge Against a Recession is to have cash. When things are going well, people think that they will always go well. There is no fear. They might overspend, and reduce their investing criteria. Then they over-correct when things do go badly. Having cash to cover running costs whilst others are going out of business is essential.

Prepare and build a war chest for the next recession. As soon as a recession ends begin preparing a war chest for the next one in maybe 10 or 12 years time. War chests are not just cash, it’s your access to finance, your network, your JV. It’s your access to cash.

Every asset class has a different price cycle. Don’t judge an overall economy or recession as one, look at different assets. They all have different cycles. Watches, for example, are going up in price, but other things like the London property market are decreasing. Know each cycle so you know when to sell and when to buy.

You Don’t Want To Get Greedy. Save half of your profits in assets or in a bank somewhere. This will be your war chest to ride out the next recession.

Ride it out when everyone else is going bust. If you do have cash then you will be able to take advantage of a recession through your purchasing power. You can then buy assets at a cheaper price. Plan your burn rate, that if you had no sales in 12 months, how much money you need to save to cover those costs.

Best Moments

‘Cash rides out all difficulty.’

‘Observe the masses and do the opposite.’

‘Stash half your profit to build up a war chest.’

‘Control what you can.’

ABOUT THE HOST

Rob Moore is the host of the UK’s no. 1 business podcast “The Disruptive Entrepreneur,” as well as an entrepreneur, property investor, property educator, and holder of 3 world records for public speaking. He is also the author of 9 business books, 5 UK bestsellers, and the global bestseller, Life Leverage.

“If you don't risk anything, you risk everything”

CONTACT METHOD

Facebook - https://www.facebook.com/robmooreprogressive/?ref=br_rs

LinkedIn - https://uk.linkedin.com/in/robmoore1979