Markets move daily. And sometimes, markets crash and correct themselves. The real skill in investing is being able to profit from a market crash.
At the time I am writing this, things have certainly been a little crazy in the markets over the last few weeks.
So, I thought I’d share two ideas you might find helpful.
The first idea comes from a great Tweet posted by Paul Graham:
No actual assets are destroyed in a down market. All that changes is the price people are willing to pay for them.
— Paul Graham (@paulg) June 15, 2022
I realize this may not be accurate with every asset. It IS accurate with the majority of assets.
I found this thought to be very helpful, as it keeps everything in the proper perspective.
The second idea can actually be found in this same Tweet.
In a crash, “All that changes is the price people are willing to pay for them (assets).”
At the of this article (June 2022), the price for just about everything including gas, airfare, cars, homes, food, electricity, and now the interest we pay on debt has skyrocketed while the price of many fantastic stocks have plummeted.
This situation has presented an opportunity for us to buy new income-producing assets at lower price points.
As they saying goes, there’s ALWAYS opportunity in adversity.
One of the opportunities we have right now is to acquire stocks offering attractive dividends. This same opportunity presented itself back in 2020 when everything crashed because of the pandemic.
During the March 2020 crash, we encouraged our Canadian Cashflownaire Members to start acquiring these incredible compounding machines!
And acquire they did. They were able to buy shares in companies at massive discounts. Companies like Suncor, Manulife, Canadian Banks, and others were all selling at a massive discount.
On a high-level, you can profit from the crash by doing the exact opposite of what everyone else does.
Since everyone is selling, it might make some sense to start buying.
This is exactly what Warren Buffett has been doing this year!
Per my sources (Google), Buffett has invested over 50 billion into 16 different stocks in the last six months!
And this can work with all assets, not just stocks. You might see things like real estate and commodities go on sale as well.
To profit from a crash, you simply need to:
1) Hold on to your assets for dear life.
2) Acquire more assets at a discount.
If you don’t know how to start acquiring good, income-producing assets, consider checking out our Stock Market Cashflow System.
You can use this powerful little System to find undervalued stocks and ETFs offering very attractive dividends.
We use this System on a daily basis to acquire income-producing assets for everyone in our family, including our children. It is important to build a system you can use to identify assets that are truly discounted in times of a market crash. This is the best way to profit from a crash in the markets.
Vince & Mike