Failing Economy = A+ Opportunity
_As our economy falls apart around us, there are many people who are very concerned. Wealth is shrinking, shifting and changing hands. What to decide in a time like this is not how to avoid what’s happening, but how to embrace it.
Embracing a failed economy certainly sounds like a desperate hope in a desperate time, doesn’t it? The fact is a downturn in the economy can be an open door for those who are looking to make their fortune. When everything’s up in the air, it’s those who are thinking of capitalistic opportunity that will come out ahead.
Things to consider during a struggling economy:
Mid-luxury Items Are the First to Go
If you are in the process of investing in any sort of business venture, keep this in mind – during tough economic times, the middle class is typically affected the most. The very poor will still be very poor and the majorly rich will still have funds at their disposal, so it’s the middle class cutting back on mid-level luxuries.
What’s a mid-level luxury? Let’s use the example of a watch. You can always get a decent, super cheap watch at most chain retailers. For another $20-30, you can upgrade to a watch that’s pretty similar, just branded with a product label. When you have to choose between a product label or your debt to the gas company, a super cheap watch will suddenly suffice.
If you are thinking of making money through a product or service during an economic downturn, go big or go small. Just steer clear of the middle.
The Big Stock Markdown – Slashing Prices Daily
If you have always wanted to invest in the stock market but didn’t want to put up tons of cash for one lousy piece of stock, the clearance rack sale is happening! For example, U.S. automaker General Motors’ stock had a yearly high of 29.28 this year. The 52 week low as of this writing? - $1.70. Now, that is a big change. Imagine the amount of money you would have lost if you purchased loads of GM stock at $29, panicked, and sold it all at the 52 week low.
Some people did panic, sold everything and consequently, lost their shirt. Others said, “Well, I’ll just wait this out and see what happens. GM has been a solid company for quite some time - price is bound to go back up some day.” And still others took advantage of this bargain basement price to stock up (ahem).
After all, if a major corporation like GM can bounce back, as well as so many of the others that are in trouble, there is a lot of money to be made. Anyone remember the old price of Apple?
Buying a Home May Not Be an Option – But Everyone Needs Somewhere to Live
Giving the mortgage meltdown, it has been said that it’s harder than ever to get approved for a loan. More than that, during tough economic times many people are missing the ability to commit to high mortgage costs and pay for a home investment. Where does that leave them? Renting.
If you have disposable income and have considered dabbling in real estate, a tough economy is a great time to start. Not only are homes and commercial housing selling for less, but the need for housing has increased substantially. The risk? Getting a renter that can’t pay.
Renters are often protected – it’s not so easy to just say, “Oh, you didn’t pay. Get out.” Often, landlords will have to house deadbeat tenants longer than they would like, cutting into their profits and causing all sorts of problems. So, if you’re considering becoming a landlord, make sure you can afford to house some of your tenants for free. But the ones that do what they should? Pure profit.
During tough economic times, don’t sink with the ship. Use your ingenuity and invest in the changing financial climate. Opportunity’s knocking!
Embracing a failed economy certainly sounds like a desperate hope in a desperate time, doesn’t it? The fact is a downturn in the economy can be an open door for those who are looking to make their fortune. When everything’s up in the air, it’s those who are thinking of capitalistic opportunity that will come out ahead.
Things to consider during a struggling economy:
Mid-luxury Items Are the First to Go
If you are in the process of investing in any sort of business venture, keep this in mind – during tough economic times, the middle class is typically affected the most. The very poor will still be very poor and the majorly rich will still have funds at their disposal, so it’s the middle class cutting back on mid-level luxuries.
What’s a mid-level luxury? Let’s use the example of a watch. You can always get a decent, super cheap watch at most chain retailers. For another $20-30, you can upgrade to a watch that’s pretty similar, just branded with a product label. When you have to choose between a product label or your debt to the gas company, a super cheap watch will suddenly suffice.
If you are thinking of making money through a product or service during an economic downturn, go big or go small. Just steer clear of the middle.
The Big Stock Markdown – Slashing Prices Daily
If you have always wanted to invest in the stock market but didn’t want to put up tons of cash for one lousy piece of stock, the clearance rack sale is happening! For example, U.S. automaker General Motors’ stock had a yearly high of 29.28 this year. The 52 week low as of this writing? - $1.70. Now, that is a big change. Imagine the amount of money you would have lost if you purchased loads of GM stock at $29, panicked, and sold it all at the 52 week low.
Some people did panic, sold everything and consequently, lost their shirt. Others said, “Well, I’ll just wait this out and see what happens. GM has been a solid company for quite some time - price is bound to go back up some day.” And still others took advantage of this bargain basement price to stock up (ahem).
After all, if a major corporation like GM can bounce back, as well as so many of the others that are in trouble, there is a lot of money to be made. Anyone remember the old price of Apple?
Buying a Home May Not Be an Option – But Everyone Needs Somewhere to Live
Giving the mortgage meltdown, it has been said that it’s harder than ever to get approved for a loan. More than that, during tough economic times many people are missing the ability to commit to high mortgage costs and pay for a home investment. Where does that leave them? Renting.
If you have disposable income and have considered dabbling in real estate, a tough economy is a great time to start. Not only are homes and commercial housing selling for less, but the need for housing has increased substantially. The risk? Getting a renter that can’t pay.
Renters are often protected – it’s not so easy to just say, “Oh, you didn’t pay. Get out.” Often, landlords will have to house deadbeat tenants longer than they would like, cutting into their profits and causing all sorts of problems. So, if you’re considering becoming a landlord, make sure you can afford to house some of your tenants for free. But the ones that do what they should? Pure profit.
During tough economic times, don’t sink with the ship. Use your ingenuity and invest in the changing financial climate. Opportunity’s knocking!