Make Money in a Falling Economy Following these Simple Facts

Let’s not kid ourselves…..seriously.  Not only are we in the middle of a Pandemic with millions of people out of work in the United States.  We are also in an economy that has been built like a House of Cards and if you are not careful it’s going to fall and take you with it.  Just like bubbles in the past, speculation is louder than facts and once again we are all playing the same economic game of “everything is booming” until the bubble pops and then everything falls apart.

Photo by Pixabay on Pexels.com

First, our current U.S. administration has run up our deficit climbing past $24 trillion dollars (growing 21% under Trump alone)! The Federal Debt to Gross National Product is 119% and climbing (largest ever).  Basically, the U.S. is borrowing, like crazy, a lot of money from not only ourselves (70%), but from other countries like China and Japan.  Yep…we owe China around $1.1 trillion and Japan $1.2 trillion dollars.

Side note:  US consumer credit card debt is around $1 trillion, which is the highest ever too.

Not to get into the weeds….but basically we have a President that is factually known for running up debt to borrow time making money for himself while basically screwing others with bankruptcy and defaults.  By the way, the American worker is the one that ultimately suffers with the loss of jobs and paychecks when companies declare bankruptcy.  President Trump has filed bankruptcy an estimated 6 times (don’t have his taxes to officially confirm) along with defaulting/losing money in several failed companies. 

Failed companies:  Trump Steaks, Trump University, GoTrump, Trump Vodka, Trump Mortgage, Trump, The Game, Trump Magazine, Trump Ice, Trump Network. 

Bankruptcies include: Trump Tai Mahal, Trump’s Castle, Trump Plaza Casino, Trump Plaza Hotel, Trump Hotels and Casinos, Trump Entertainment Resorts

Now, this post is not totally about his failures as it is about you and me the American tax-paying citizen.  Basically borrowing and printing money builds an unstable base in the economy.  The person running and touting this economy has way more failures than successes, and I didn’t even include his estimated 3500 lawsuits.

So before we go thinking this administration is smarter then everyone else, I look towards people like Warren Buffett and others when it comes to investing and making money in the stock market.  You need to learn something that I have posted on an index card over my desk as a reminder every time I get nervous about the money I have made.  These are classic Warren Buffett facts and it is you’re “keep me sane card” when things continue to get turbulent. 

1.)  Markets average one -14% annual decline.

2.)  Daily dips of 2% or more occur about 5 times a year.

3.)  Every 5 years or so, markets decline 30%+.

4.)  Markets rise almost every 3-4 years.

5.)  Over long periods, markets beat inflation.

6.)  Selling low and buying high never works.

7.)  Turn off the television and do not check your accounts daily.

8.)  never make important decisions on emotion.

Investing and making money takes time and you need to set yourself up to be successful in the long run.  Plan to invest when things are down and don’t panic sell. Buy and hold…and I mean really hold.

Patience is the key….long term patience.  This is really no quick money in the stock market, only those that tweet or Facebook about it wanting you to see how great they are when really you know nothing about them.

CarterW.

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