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6 Steps to Survive the Coming Recession

6 Steps to Survive the Coming Recession


– I wanna show you six ways
that I personally have prepared for the recession which I
believe is about to hit us. Number one. I’ve sold certain types
of investments and stocks, which I believe are going
to much more vulnerable to the affects of the recession, or any kind of economic downturn. Number two. I’ve kept a lot of that money in cash, so that it’s ready to
be adaptable or usable when the opportunities arise. As the market start to decline a bit, there’s going to be a lot of opportunities and good values that you can pick up, but it’s only if you have cash that you can take advantage
of those opportunities. And number three. As I’ve told you for years,
you need to be very cautious with any kind of high end stuff,
any kind of luxury product because that’s going to
be the most vulnerable to this recession when it
starts kicking into high gear, and it’s something that’s gonna
be costly as an investment because the businesses
underneath those investments are going to be very vulnerable to any kind of slow down in the economy. We’ve changed our focus a lot towards those types of industries, which will survive and thrive, and hold their ground
during economic weakness, and in times of recession,
so we’re starting to move from the more riskier stuff
towards the more stuff that’s gonna hold your purchasing power, and will not only survive the recession, but will in some cases do very well because of the recession. There’s lots of opportunities in that, and that’s what we’re focusing on now. Number five. I’ve delayed and put off purchases in any kind of high end
thing such as condos, boats. That kind of stuff. Stuff you don’t need. It’s of a situation where
it’s probably all going to be priced at much lower
levels a year from now, six months from now than it is right now. If the recession hits,
depending how hard it hits, how soon it hits, then all
these things are gonna be trading at much lower prices pretty soon. So you don’t wanna be taking
on a huge mortgage right now and some house that you
can’t even afford to pay for. You don’t wanna do that now, because it’s not gonna get easier. It’s only going to get worse, and I’m not talking about the
interest rates increasing. That’s just another kick in
your butt if that happens, but even if there’s no
interest rate increases, there’s houses in real estate right now that is so overvalued
that it’s very likely that it’s gonna come down in price, in which case it’s probably better if you can wait any longer. You wait a bit to see
how low it’s gonna go, and you can pick it up
at a much lower price in the near future in my opinion. Number six. I think you should be
paying down your debts, and when I say you, I mean I. This is an opinion of what I do. I don’t know what you should do, but I do believe that people should be paying down their debts
especially right now. Right now is the absolute
most important time that you should be putting off other stuff to make sure that you don’t have any debts or any outstanding obligations, whether it’s to the bank, or
to your credit card company. Try to clear those debts
as much as you can, especially if the
recession is about to hit. And I’ve got a special
bonus tactic number seven I’m going to tell you about
a little bit later on, which will really help
you understand what to do and how to proceed from here. I do believe the recession’s on the way, and I do believe it’s going
to be very much stronger and more longer lasting
than people realize. Now if this is your first time
here, my name is Peter Leeds, and along with my full team,
we show you honest strategies for maximum profits and that means that we’re talking about
cryptocurrencies, oil prices, gold and silver precious metals prices. Where the market’s gonna go next. Why they’re gonna go there next. Macroeconomic events. Things that are going on in Europe. Military engagements. All designed to help you
understand the best ways to avoid the risks while
also turning a small amount of money into something
much more significant. Show you the opportunities
that are arising all around you right now
that you might not be seeing. This is what we do here. Everybody else is going
to tell you on YouTube subscribe to the channel
and you hear it so much, that it probably just washes past you. You ignore it, but in this case, with this moment right now with you and I, if you’re not subscribed to
the channel, please do that. I’ve sold many kinds of stocks that I believe would be
vulnerable to a recession. Now these aren’t bad companies. I think these companies are great. I mean, I invested in
them in the first place, but we’re talking about
big quality companies that I felt it was time
to back off a little bit, and maybe use those
funds as cash to be ready to take advantage of opportunities, or to move into other
assets or investments, which I believe will do well during and because of a recession. So this includes some of
the stocks that we did sell, that I sold personally. Were companies like Cracker Barrel, GameStop, Carnival
Cruise Lines, Lululemon, Under Armour, Harley Davidson. These kinds of companies we had shares in and we sold them and
we still have the cash, or the cash is either
sitting there ready to go, or it’s been reinvested in other assets, which we’re gonna talk
about the types of companies that we got involved with
just coming up in a minute. So that brings us into tactic number two. We’ve moved into cash a lot to be ready for any opportunities as they arise, and now this is the point where
I’m going to take a moment to remind you that this
is not trading advice. I don’t know what you should do. I don’t know who you
are, or what you should, or should not do. I’m just telling you what we did, and also my opinions of what I think that someone could do to
prepare for a recession, but watch the video, learn from it, but don’t act on exactly what I say. You do what’s best for you
and take in the information. You get my opinion. You put it with your own opinion. The opinions of a bunch of other people, and any opinion you ever hear
from anybody, not just me, you’re gonna be able to find 100 opinions that say the exact opposite. You’re gonna have 100
opinions that are gonna agree with that exact same statement. So you need to be the only one
who’s the common denominator. You’re at the middle of that deciding what you are going to
do, what’s best for you, and if you don’t know, then
talk to a financial advisor. I’m not a financial advisor. I just give you my
opinions of what I’m doing. It’s not an opinion. This is what I am doing. But I also give you my
opinion of what I think that people might want to consider doing depending how things will play out. And number three. As I’ve told you guys for years, avoid high end and luxury items, luxury services and products
because these will be on the front lines or the first to get hit when the recession kicks into full gear. This means luxury watches,
or high end steakhouses. These guys are going to be devastated when the recession really gets moving. They’re gonna be laying people off before they go out of business. You have to be super cautious,
super careful with that. If the recession gets as bad
as I believe it’s going to get, then any kind of high end
steakhouse expensive restaurants, that’s the first thing that
is gonna be taking a hit when people decide to start
saving money a bit more. They’re not gonna go spend
money at these places, and this has been proven over the history time and time again. It’s gonna happen again. This time might be even worse. So if you have a favorite steakhouse, maybe you go there now one more time, but you’re not gonna be able to go there too much more a few years down the road because it might not even exist. Number four. We’re also shifting our focus towards those types of
companies which will not only hold their ground and survive a recession, but will actually thrive
during a recession. So for example, we’re looking a lot into military technology companies. Those companies that make the equipment for military engagements but also those that have the technologies
that go into those equipment because military is one of those things that will operate the same. They’ll spend the same amount of money regardless of how the economy is doing. This has been proven over
historical precedence, going back as far as you can see. The military stocks especially disruptive military technologies will do very well during a time of recession
especially considering that in comparison to a
lot of other companies that will be declining in value. If it holds its ground, then that means it’s actually proportionally increasing, but if it goes up while
other stocks are falling, that’s even better and that’s
where you’re gonna see a lot with the military technology companies. The other one to look
at is healthcare stocks because no matter how
the economy is doing, there’s a lot of people who will always still be buying their pharmaceuticals, and their surgeries that they need, and the drugs that they need
to deal with their illness. Healthcare stocks will usually
hold up significantly better than most other stocks during a recession, and we believe that’s going
to play out again this time, especially with the demographics
of the baby boomers aging and now needing to be in assisted care, or assisted living facilities
more than they used to be. This will just play into that even more that there will be a lot more demand for the elderly looking
for a place to live, so if you’re getting into the stocks that benefit from that during a recession, they will probably hold up pretty well, and with the wind at their backs of all of the baby boomers aging, and needing this kind of
assisted living facility that will actually increase
the demand for that and the stock should do
pretty well in my opinion. Course there’s also certain
types of disruptive technologies that we look into that
they will do so well if they’re growing so fast. Sometimes they’ll grow so fast that even if the recession hits, even harder than anyone expected, that company’s still
just exploding in size that they will basically outperform on an upward basis the
effect of a recession, which is pulling stocks
on a downward basis. So the specific very individual specific disruptive technology
companies that we look at, and the other one too
that we look at a lot of, gold mining companies and
precious metal miners, silver, platinum, palladium
because a lot of these stocks will actually be sort of
like nature’s insurances. What I always call them. If there’s a military engagement, if there’s chaos in the economy, you’re gonna see things
like gold do pretty well, and especially when it leads to, or the situation leads to a decrease in the confidence in the US dollars, then proportionally
it’s going to seem like gold, silver, platinum are
all increasing in price, and I have an outlook and
if you guys have even been paying attention to my
videos over the last year, you’re gonna know that I believe that all precious metals
are gonna increase in price. All commodities are
gonna increase in price because I believe that
the US dollar is going to decline in purchasing
power, decline in value. So if you’re buying pork bellies, which I don’t know why you would be, but if you’re buying pork bellies, they’ll probably seem like
they’re increasing in price just because it’s taking
more watered down dollars to buy the same exact asset. Now a lot of the gold mining companies and I say gold mining but I mean all the precious metals miners
will probably do pretty well as these underlying
commodities increase in price, and the reason that or what
you have to look for is I don’t like exploration companies because any company that’s just looking for something that could be valuable, it’s a different kind of
concept than a company that actually has found proven reserves, springing them out of the ground, and then selling them at market rates to other people or to other companies. They’re selling their gold. They’re selling their silver. These companies if they have a double digit reserve life index, which means that they can continue to bring the assets out of the ground at the exact same rate they
are now for that many years, at least 10 more years,
then they are a lot better. There’s a lot of companies that seem like they’re a great
value, but they’ve only got a one or two year reserve life index left, then they haven’t found any new
finds or anything like that. Always look for a double
digit reserve life index, and try to find a company
that hasn’t forward hedged all of their assets already. The company may have 10
million ounces of gold, but they’ve already pre-sold it, so if the price of gold doubles, they’re locked into that price with the company that they
signed the contract with just to get the money in the first place for the value of the asset at that price, and therefore, the increase
in the prices of gold will not help a company like that. So look for companies
in the resorts industry that have not forward
hedged their assets already, that they have a double
digit reserve life index, and that they’re
operating in economically, and politically, and
militarily friendly regions. That means North America, parts of Europe, some in Africa but mostly not in Africa. You wanna make sure that
it’s a stable company that’s gotta great management
team and a good track record. That’s what we look for and that’s what we believe is gonna do well. As the commodity prices increase, then you’re looking at a massive jump in the actual earnings of the company. If the price of gold goes up 10%, the earnings of the
company might go up 70% just because the cost to
get that one ounce of gold out of the ground is set. It does not change over time. So if the price of gold doubles,
it’s still the same cost to find and pull out that ounce of gold, so that doubling in price
of the underlying commodity all goes to that company’s earnings, and that means that as I said, the price of gold goes up 10%, you’ve got an increase of
maybe 70%, sometimes 200% in the earnings of the underlying company. Now number five I’ll tell you right now, but don’t forget I’ve got
number seven coming up as a special bonus tip for you. Number five is that you
delay some big purchases. Not you, I. I’ve delayed big purchases
that I don’t believe will be higher in price a year from now. I believe that a lot of big purchases such as condos, houses,
that sort of thing. I’ve got my eye on a few myself, too, where I believe that the price of these will absolutely decline in value, and I’m waiting for a moment to pick them up at much lower prices. If you have a house but you live in it, don’t get too scared because
as long as you’re living in it, it doesn’t matter if it
goes up and down in price, but if you’re doing this
on a speculative basis, or you’re looking to buy your first house. Sometimes it might be
an interesting concept to maybe, personally,
possibly delay a little bit to see if the prices get lower, ’cause I believe that they will. This is all opinion. Don’t listen to me and if I’m wrong, which I’m wrong all the time. If I’m wrong, don’t get mad at me. You make your own decisions and you live with the results of those choices. And number six. This is one that’s near
and dear to my heart. Pay down your debts because I believe that interest rates will keep on rising. I think that it will cost you more to pay down your debts
six months from now, than it will cost you right now. I don’t like owing people money. I still remember kids from high school that owe me money for Aerosmith tickets. I’ll never forget it. I can’t. I want to but I can’t forget that. I don’t wanna owe anybody money ever, and if I owe somebody money,
I think about it everyday. Pay down your debts. You’ll love it. If you do not have anymore debts, it’s going to be easier
to pay down your debts. It’ll have a bigger effect
if you paid down now, than if you wait six months
because then the interest rates will be higher and then you’re paying down debt at a higher carrying cost. The interest payments will be higher just ’cause the interest rates change, and you’ve done nothing different. So you’re paying more
on your credit cards. You’re paying more on
your allotted credit. Your mortgage will be higher
if you don’t have a fixed rate. This is why I think that you should always pay down your debts. Just don’t take in any expenses if you are going to be
increasing your debt load. Always be reducing your debt load. You don’t have to do it fast
but just slowly over time. Always always have less debt every day than you did the day before
and at the end of the day, you get rid of your carrying costs. That’s gonna save you money. You’re gonna have a lot more money. Accessible and spendable and
you’ll be glad you did it. Now the bonus tip number
seven as I teased you with, and then I promised you is that you gotta learn as much as you can. There’s so many free resources. You have no excuse or reason not to learn everything you need to know. You can do it all now with the internet. It’s a click away. Everybody’s gonna tell
you what you can do, how to do it, the best ways to do it, and you have no excuse. You can’t say oh I didn’t know what to do. There’s so many ways you can learn, and to get you started, to help you out, I’ll put a whole bunch
of links below this video that are gonna tell you step by step some of the other videos
that you can start watching that are really gonna help you do everything you need
to do to be debt free, and to be in a good position. So that when you wake up one morning, you see the stock market is
crashing or going the wrong way, or we’re right in the
middle of a recession, everybody you know has lost their job, and your neighbors are going broke, at least then you’ll have seen it coming. You’ve prepared for it,
you’ve set everything up, so that you benefit from it
and you actually turn a profit rather than being living on the streets like a lot of people might
have to wind up doing just like they’ve done
in the past many times. I always give the worse
case scenario, I know that, and I’m always early on my calls, but I do believe that
we are right on the cusp of what is going to be a recession. I believe that absolutely,
positively for sure in my opinion and also I think that this will be a lot worse than people are realizing, and there’s are reasons for that. I can tell you all that in other videos, which I can put below
this video links to them, so that you can see what I’m
talking about and my philosophy but you guys this is certain easy things that are not that hard that you can do to prepare for what’s about to come, and I hope that this helps you, and I hope that you
guys land on your feet. I plan on landing on my feet
just like I always seem to do.

52 thoughts on “6 Steps to Survive the Coming Recession

  • Thank you, great video! Hey Peter, with dodd frank in effect.. what kind of account are you trading from.. ? Or are u in canada?

  • I agree 1000%. Here's what I've done to prepare.

    First, I fired my financial advisor because he wanted me to stay in index and growth funds and corporate bonds. The funds were overweight with FAANGs. Sold all of it and reinvested how I see fit.

    One very simple thing I ALWAYS do when assessing a stock is check how it performed during 2000-2002 and 2007-2009.

    Choose companies which pay dividends and have done so reliably through the years. It's even better if they're near their 52-wk lows. (Like REITs)
    This way, even if the share price takes a hit it shouldn't fall too far. And you'll still get the dividends. This is about 33% of my portfolio.

    Speaking of near their lows, I bought some GE at $12.80. It may fall to $8 during a recession. If so I'll buy more. Also pays a 3.5% dividend. 5% of my holdings to date.

    Invest in good companies outside of the US. I have a large portion of my portfolio allocated to a Brazilian utility with a ~12% yield.

    Utilities within the US too. Good dividends. People either pay their electric bill or the lights go out.

    AT&T and Verizon. Pays dividends. In 2007-2009 these didn't not fall much lower than their 2006 share prices. Even people on welfare have iPhones.

    Like Peter, I also own gold/silver miners. Large tier and junior. 25% of my portfolio. These are dirt cheap right now! Load up while you still can!

    Instead of cash, I keep GLD and SLV ETFs as my "dry powder". If the dollar crashes, these should preserve my purchasing power and I may actually profit.

    Not for everyone, but I'm lowering my expenses by moving into a less expensive house. Trying to get this done before real estate tanks. (It's already started to tank, my house has lost about 1.5% since Feb according to Zillow)

    Never get into a variable rate loan! It's good to pay off debt. But if you don't have the means, at least with a fixed rate loan your payments won't increase.

  • Hey Peter, hope all is well with you. I didn’t know you were on YouTube. I had invested in penny stocks using your site a few years back and did well. For whatever reason I got out of trading and I’m looking to get back in to it again. Thanks for sharing.!

  • Damn, it's hard to beat common sense into some people. I stopped talking to anyone with contrary opinions to the truth, they just think it's a conspiracy/sky is falling theory.

  • Excellent information, Peter. I listened to what you said about exploration companies and I got to wondering if you have ever visited http://www.corebox.net? It's a great website to view diamond drill results to decide if certain properties are worth speculating on or not. I have found some really great exploration companies who have identified profitable results to turn the property into a mine.

  • As soon as I see a new Peter Leeds video, I hit like before watching it through. I know he's going the right way minus the hype thats the bane of many mainstream media.

  • Hello Peter, I love your videos. I really like point #6. Yesterday, I owed almost $12K on a line of credit. I made a $4500 payment yesterday, and I will pay $5000 more later today. After this, I will owe about $2100, which shouldn't take me long to pay off. Even though my savings will be taking a beating through all this, I will be very happy to have this debt paid. After that, I can concentrate on stocks etc. I will be in a much better place financially this time next year… Cheers, Rob

  • Hi Peter, is it OK to borrow money to buy gold, when recession comes and assuming PM prices will rocket high, pay off the debt and keep the profits.

  • Crazy thing is 1st Company that I thought about continuing to grow in a recessionary environment is… Netflix. Many will recommend Johnson and Johnson , Clorox , McCormicks and other consumer staples equities however I believe Netflix could possibly be a nice choice. We live in a “couch based economy “ (something I coined) and I believe Netflix will be one of the last services to be cut. Movies really did well during the Great Depression as folks need a form of escapism to deal with the drudgery of a poor economic environment. Full cable plans will be cut. Monster beverages will be hurt . IMAX theaters will have low attendance. But I bet that 11 dollar per month service will hang on until the electrical services has been suspended

  • When you say recession, but then follow it with – much worse than anyone believes, doesn't that start sounding like depression? I have a feeling you were dancing around that.

  • It is very hard for some people including myself to change the thinking they have had for so long. That is why it is a good idea to review these videos and think about it. Be willing to change our views

    Under this tombstone lies Timothy Gray
    who died maintaining his right of way
    Oh he was right "Dead Right" as he sped along
    but he is just as dead as if he were wrong

  • What about the 21 Trillion debt,and the additional 21 plus trillion that missing,how can we bail all that out with out a complete currency reset?

  • When a recession hits, invest in, legitimise and aim to profit from the death and illness of other human beings. Great ethics, bro.

  • And BTC/cryptocurrencies are at all time lows. Try to buy 1 bitcoin as cheap insurance. Upside and future adoption is enormous. Encourage your subscribers to educate themselves.

  • Haha we are looking at a total collapse of the global banking system, a rush on the banks and a complete collapse of social order, news this morning that the Fed is propping up the banking industry to the tune of one billion dollars per hour and has been doing so for over a week

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