government bonds those who are not struggling are picking up government bonds left and right a government bond is basically the government's way of borrowing money from businesses and individuals with a pretty decent return and little to no risk the rich pick up these bonds and the government pays you interest these are seen as a very safe investments because unless the government collapses you're getting your money and your interest more economically developed countries that use these financial instruments to regulate the market without the need to print new money and devalue the currency
dumping or shorting stock before it heads there's a reason why the rich constantly have their eye on the market they like to think 123 steps ahead of the curve and put themselves in the right position to make the most of what's about to happen when the virus began spreading in China many ultra wealthy individuals took notice and began selling the stocks that were most likely to be affected by the virus as well as shorting the market short sellers made over $50000000000 during the coronavirus sela here are 2 examples of this being done right billionaire bill Ackman CEO of Pershing square capital management turned a 20 $7000000 into 2.$6000000000 by betting that the markets are going to crash due to corona virus that's what using leverage allows you to do the second example is a lot shadier Republicans Richard Burke Kelly Loeffler and James in house and Democrat Dianne Feinstein collectively off loaded up to $11000000 in stock between late January and early February weeks before the public was given access to the same information. Number for buying stocks at the bottom when the world goes into a frenzy and starts panicking that's when the rich calmly go out shopping but instead of stocking up on toilet paper they're buying shares in to some of the biggest companies in the world at a discount basically a recession is Black Friday for rich people this is one of those things we took advantage of ourselves during the downturn and our portfolio has provided over 40 percent returns if you click on the top right corner you can see which stocks we purchased and at what price we've been preparing ourselves for this type of situation for years now and it's time to act there's a great book we read to learn how to do this is specifically called unshakeable by Tony Robbins which we recommend as a mandatory read during the coronavirus quarantine even better go to a luxe.com slash a free book right now and if it's your first time signing up to audible you can get unshakable for free as an audio book it's free knowledge so go get it
renegotiate everything they're rich love getting better deals and this is the perfect time to pick up the phone everything you can refinance gets refinanced businesses are so desperate to keep their important clients they agreed to terms they wouldn't have accepted normally just by picking up the phone and renegotiating the richer not only increasing their returns but also freeing up money for everything else on the list everything in life is negotiable you're just not used to negotiating that much.
buying a bankrupt company What if you were a large company and could purchase infrastructure intellectual property fully trained employees and raw materials that you would normally pay a premium for at a fraction of the cost sign us up big companies are swimming in the market waiting for their competitors or tensions businesses to collapse so they can pick up the scraps for cheap think of the airline and cruise ship industry right now they're hemorrhaging money because nobody's flying or taking a cruise but it doesn't mean the ships and planes aren't valuable in and of themselves they just need to be you the question is will you survive long enough to make it through.
buying real estate dirt cheap companies aren't the only thing that's struggling right now we consider real estate the best possible asset anyone can help the process is simple recession comes along people are scared some lose their jobs some struggle more nobody is splurging on anything the economy contracts there is little demand from the masses prices dropped because normal people can no longer afford it the rich come in and pick up everything of value at a fraction of the cost although at the moment the hardest hit is commercial real estate over the next 18 months the biggest drop we'll see isn't new residential developments developers have been building like crazy more often than not on credit assuming the demand will be there when the building is over but with people unable to buy the banks will come knocking asking for the money they are out if you could buy the apartment you're living in for half the price it's worth why wouldn't you.
more people are looking for work which means it's cheaper to do business recessions are great for those who are able to keep the business going it forces you to trim the fat of the business and to go lean a ton of people unfortunately get laid off those who get to keep their jobs are thankful costs of doing business drop significantly this creates an imbalance of power in the market the more people looking for work the cheaper it is to hire and the less you have to pay your employees because there's always a bunch of people waiting in line at the door to take your spot
Low interest rates because the economy is at a standstill banks are also losing money so they're doing their best to pick up your business they do so by lowering interest rates rich people with a great track record can simply borrow money for a little too even 0 interest rates this is where having done this before and having your credit score ready comes into play as a massive competitive advantage this allows them to refinance everything without worry the bank will loan you money so you can take advantage of the downturn in the market just because you've proven that you're able to pay it back in the words of J. C. you know what's more important than throwing away money at a strip club credit.
Insurance you might be scratching your head at this one but we want to share a story and a piece of insight many of you might not be aware I don't know how many of you are tennis fans in the audience but most of you should know about Wimbledon the tennis tournament for the past 20 years they actively paid for pandemic insurance in total they ended up paying around $30000000 so far in insurance costs but the pay out from the corona virus claim is in the ballpark of $140000000 making it one of the best investments anyone could have made and they're not alone there are many businesses out there who've been actively paying for this specific type of insurance and we've seen a surge in demands for insuring against the next pandemic.
move money to tax havens to store value 1 of the things rich people fear the most is the government's devaluing the money they worked so hard to get through inflation inflation comes as a result when new money is printed and floods the economy for the past 100 years this has been the main plagued governments have taken to stabilize the economy just print more taking a look at the USA right now the fed wants to print 2.$3000000000000 into the economy to avoid a financial collapse as of right now there are only 1.7 $5000000000000 in circulation that's actual bills in people's wallets with all that new money coming in there's a high chance of hyper inflation and the devaluation of the dollar the rich are seeing this coming and are looking to safeguard their investments they take the money off shore they buy gold silver and crypto they also diversify their currency's purchasing it less volatile ones like the Swiss franc or Norwegian krone.
contracts with the government in order to boost up the economy governments need people to work they began infrastructure projects and grants these contracts to businesses the rich own most of these businesses thus making even more money but at least they're hiring people and some of that money trickles down there's nothing more recession proof than government contracts.
Stocking up on raw materials most of y'all probably have seen the price of oil drop like crazy in the past few days we are eager to break it down for you but since we're trying to keep this short we'll save it for another day what economies come to a standstill such as right now both people and businesses stop buying raw materials thus the price for them drops in direct proportion with demands it doesn't mean that gas oil iron and so on has lost its intrinsic value it's just that people don't need them right now the rich you've been sitting on cash purchase and store these raw materials and wait for the recession to blow off before putting them back on the market when the demand and the price for them returns to normal.
They invest in businesses that thrive in a recession. The most thriving sectors of this pandemic have been E. commerce with a focus on food and product delivery of the likes of Amazon online entertainment of the likes of YouTube Netflix and so on and don't even get us started on pharma as a whole because of the way they structure their portfolios through diversification they're protecting themselves against fluctuations in the market and some of these bets pay off big time every pharmaceutical company right now is rushing toward finding a cure for the coronavirus imagine holding stock in that company before they announce they cracked it under ready for mass distribution another big point we'd like to touch upon our start ups that thrive in this kind of environment after 2008 we got uber Airbnb and so many others the rich are keeping an eye out for up and coming startups with the option of getting it early as an investment.
They purchase luxuries when others are forced to sell some particular arts collectibles and premium properties rarely go on the market but recessions are special and that sometimes they force wealthy individuals to liquidate their luxuries to patch up holes in their sinking ships that's when the rich pick up the rare Picasso they've been eyeing for years or that Ferrari 250 GTO that's been eluding them premium properties never hit the market like most of you are used to from personal experience we can tell you that high end brokers and real estate agents already have a curated list of customers who are notified that said item or property might have come up for sale and if they're interested in placing a bet usually if it hits the general market the first wave of rich individuals didn't want it now what about you a laxer you might not be super rich but you definitely have some ideas to come out ahead of this how do you plan to make money during this recession let us know in the comments and as a thank you for watching until the end of this video you're getting a bonus recession it's determined the New World order now before you start putting on your tinfoil hats this isn't some Illuminati type of information instead it has to do with the macro economy and geopolitics and since we made the video short for the masses will do a longer 1 for you true analog circuits the more you study economic history the more you understand the cyclical nature of it all we're not going to get into long term debt cycles versus short term you can look that up for yourself but basically every 50 to 100 years there's a major shift in international hierarchy after the second World War the USA came out I had to become the number 1 top dog in the world this gives you certain financial privileges the dollar became the international reserve currency and once the gold standard was removed the U. S. basically play the money game with cheat codes allowing itself to print as much money as it wanted and still retain its value this is likely about to change though with China over. Taking the number one spot once again many of you might not know this but historically China has been the world leader for way longer than the U. S. the big problem is these changes don't come peacefully it's usually wore or Great Depression that drives them and statistically we're toward the end of the cycle and changes are due the US plan has been to print money and drive growth without any regard to dat and that's why it's currently $25000000000000 in debt the only way for this to be wiped out is through an international recalibration of power and currency out of which the US hopes to come out ahead at the moment China overthrows the U. S. as the number one leading super power the yeah and becomes the reserve currency and the entire U. S. financial system will collapse forcing the US to retaliate with their military or accept its fate historically the larger the gap between the rich and the poor the closer you are to war in general the first steps are usually a state of unease losing trust in governments and a rise in populism all of which we've seen happening around the world in the past decade we're not smart enough to predict the future but based on what we've been able to discern the corona virus pandemic is this the biggest to happen in our lifetime and something bigger is yet to come no matter what happens we hope all of you will find your spot and thrive in the upcoming world if you made it to this point please write and W. O. in the comments most people have no idea what it stands for but we all know
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