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Hello fellow Off-Grid Investors!
As always, the world of finance is a whirlwind of activity. I'm aware it can be mind-boggling and tough to stay on top of. Rest assured, my role here is to steer you clear of the chaos and get you straight to the crux of the matter.
Today's post will start with a little lesson i had to learn as an angel investor.
Let's dive right in!
My Story…
The realm of alternative investments is often a mystery until we dive in. One surprising reality is the prevalent attitude of "sacrifice now, gain later" when planning for an exit.
What's my point here? When money sits idle, it essentially bleeds value. The true purpose of money is to go to work and produce more for your objectives.
To give you a peek into my convictions on alternative investing, I've created a free e-book called "7 Mistakes Angel Investors Make."
Click here or on the image below to get your copy!
The Next Recession, here we come…
2023 has become a hotbed for predictions of an impending recession.
The economic pundits are torn between two possibilities: is the downturn going to hit us by the end of this year's third quarter, or will it rear its head in the first quarter of 2024 once the festive cheer has fizzled out?
Here's my take on this. We are, I believe, already knee-deep in a depression. But it's unlike anything we've witnessed before.
Here's why I feel we are in a depressionary state:
Working to middle class Americans are having a hard time affording basic necessities
Banks are competing with brokerage accounts for customer deposits
The Top 5 Banks are purchasing the assets of regional banks like crazy
Food banks are having major food shortages due to the war
Our allies are joining with adversaries to challenge our reserve currency status
and much more
Here's what I think: this doesn't show that our economy is doing well. Even if fewer people are out of work than ever before, it doesn't mean they're happy or feel good about the money they have.
A concerning event occurred during the week of July 5th to the 12th, as over $70 billion left the US banking system and was transferred potentially into brokerage accounts, according to data from FRED.
Bank depositors are moving in a frenzy to catch some yield and participate in a shady stock market uptrend.
Fomo is coming back as people try to figure out how to put food on the table. Walmart profits are being subsidized by higher earners trying to save money by shopping in their stores.
Ask yourself what happened to Walmart’s typical shopper?
The GOOD news…
Even though I believe we're in a depression, I'm convinced there are still worthwhile opportunities out there. Good deals are waiting in the market for us to invest in now, promising potential profits as their value increases.
Don't let the news headlines discourage you from your quest for financial independence. I can assure you, they certainly aren't deterring me!
Until next time,
Off-Grid Investor