Selling Everything (How To Invest In A Recession)

The 2022 recession and what you need to know ► Get up to 5 Free Stocks with Moomoo: https://j.moomoo.com/00e9h7 ► My Stock Portfolio + Stock Tracker: https://www.patreon.com/andreijikh ► Get 2 FREE stocks valued up to $1850 (when you deposit $100): https://act.webull.com/kol-us/share.html?hl=en&inviteCode=QhhB1aDNwEDP ► ROBINHOOD (Get 1 Stock When You Sign Up): https://robinhood.c3me6x.net/c/1980551/671816/10402 ► Open A Roth IRA: https://m1finance.8bxp97.net/c/1980551/696710/10646 ► Follow Me On Instagram: https://www.instagram.com/andreijikh/ ► How I Protect My Bitcoin: https://shop.ledger.com/pages/ledger-nano-x?r=535643c13ab0 Jeremy from Financial Education: https://www.youtube.com/c/FinancialEducation IS THERE GOING TO BE A RECESSION IN 2022? Every time we had a spike in inflation above 5% - it was followed by a recession other than 1 time in the last 70 years. WHAT IS A RECESSION? A recession is technically defined as 6 months - or two back to back quarters of negative growth. HOW DO WE MEASURE GROWTH? Growth is measured by the GDP - the gross domestic product which you can also find here: https://fred.stlouisfed.org/series/GDP, you can see the most recent recession - started in Q1 of 2020, there was a dip in growth, and then a huge dip in GDP in Q2 of 2020 which officially made it a recession. WILL THERE BE AN ACTUAL RECESSION? Check this out: https://fred.stlouisfed.org/series/CPIAUCSL going back as far as the 1950s, anytime we've had an inflation reading above 5%, we got a recession which are those grey columns in chart above. WHAT IS INFLATION NOW? Inflation is nearing 7% right now which means based on historical evidence, there's a good chance we'll get two consecutive quarters of negative GDP growth. HOW DOES THE STOCK MARKET DO IN A RECESSION? That's the real question! We’ve had 30 recessions between 1869 and 2018. Now of those 30, 16 recessions have had a positive stock market return from when they started - to when they finished. The positive stock market recessions lasted on average - 16 months and stocks ranged a return between 0.7% to 38.1% with an average return of 9.8% despite the fact that the GDP declined on average 3%. HOW IS THAT POSSIBLE? They found the correlation between recessions as measured by the GDP growth and the stock-market at nearly -0.05. So it’s almost 0 correlation between a recession and the stock market. The 14 recessions when the stock market went down, lasted 18 months on average, with an average return of -14.2%. SHOULD I SELL ALL MY STOCKS? In order to beat a buy-and-hold return of 9.0% over the last 150 years, an investor would have to successfully predict 77% of the market turns —and move in and out of stocks/cash as appropriate (Russell Investments: https://russellinvestments.com/us/blog/us-stock-market-recession-history). Even if you knew for sure when a recession was coming, the odds of losing or making money is about 50/50. History says it's nearly impossible to time the market. MY INVESTING STRATEGY Watch the video to find out! Source: https://russellinvestments.com/us/blog/us-stock-market-recession-history *None of this is meant to be construed as investment advice, it's for entertainment purposes only. Links above include affiliate commission or referrals. I'm part of an affiliate network and I receive compensation from partnering websites. The video is accurate as of the posting date but may not be accurate in the future.