(How To) Make Millions In A Recession Market Crash | Mark Tilbury

0:00Visible puts unlimited 5G data and hotspot in the palm of your hand, powered by Verizon's 5G network, with no contract holding you back. And for a limited time, you can get visible for just $19 a month for 12 months when you use promo code Save6. All the features of Big Wireless Service, for half the cost. Tap the banner to switch today. Terms apply, standard rate applies at month 13, see visible.com for plan features and network management details. Instagram teen accounts come with automatic protections that limit who can contact teens, the content they can see, and the time they spend on the app. Learn more about teen accounts and Instagram's ongoing work to protect teens online at Instagram.com slash teen accounts. Hi there, I am fully charged and here to tell you, Toy Story 5 is now on Disney Flash. What do you mean? It's been too long, cowboy. Woody Buzz and Jesse are back for a brand new adventure with some seriously cool new tech.

1:02What? Holy butter scotch! You said it, Jesse. So, save your batteries and watch the global phenomenon at home. And the best part, it's perfect for the whole family. Power up your movie night and watch Disney and Pixar's Toy Story 5, now streaming on Disney plus rated PG. So, the stock market will crash. It's happened time and time again. This is the scary truth. However, it doesn't have to be a bad thing. As long as you're properly prepared, you can benefit from the chaos. I've been investing for more than 35 years and as you can imagine during that time, I've experienced lots of these crashes. However, I always seem to come out the other side wealthier than before. So, today I want to share the knowledge that has helped me make millions through multiple market crashes. By understanding these strategies, you can spot the warning signs of a crash and use them to your advantage. So, how common is a market crash? Well, there are three different types of market decline. First is the most common type of decline, a market correction.

2:02This is defined as at least a 10% drop from a recent high. These can be caused by various factors. But think of it as the stock market realising it's getting a bit expensive and coming back prices. On average, this happened around every 1.2 years since 1980. The second most common type of decline is a bear market. Now, you know when you're in a bear market, when prices have dropped more than 20%. Since 1932, these bear markets have popped up on average every four years and eight months. They tend to keep dragging the market down for about 289 days or roughly 9.6 months. Sure, that sounds like a long time. But keep in mind that bull markets, which is when the market is going up, usually lasts around 965 days or 2.6 years. The third type is a stock market collapse, which I class as an over 30% drop in the stock market, normally within a very short amount of time. Although these are very uncommon, they can happen.

3:04In my opinion, if Trump had been unalived, then this could have been a very real scenario. That isn't a political view, just a logical one, due to the way the stock market reacts to this kind of thing. The main takeaway from all of this is that if you aren't ready for the stock market to go down sometimes, then you shouldn't be investing in stocks. So how do you spot a market crash? Well, let's discuss the free phases of a market crash, so you'll know what to look out for. I'll also share the strategies I use at each stage, backed by real life examples from my experience. This way, you'll be better prepared than most investors. Remember, I'm not a financial advisor, and this isn't financial advice. I'm just sharing what's work for me over the years. Number one, the euphoria phase. This is a stage where the market is at its peak, an irrational excitement, drives prices to unsustainable levels. During this stage, everyone is happy and flying high. When I start seeing this blind happiness, I prepare my investments for when everything comes crashing back to reality.

4:07Before the 2008 financial crisis, there was a couple of things that I noticed that really made me cautious about investing. First, was the boom in consumer spending. Everyone had money. They were spending thousands of the economy was thriving. A more recent example of this is the NFT craze a couple of years ago. Never in a million years would I have thought that people would buy JPEG image files for millions of dollars. Things like this are a clear sign of too much money in circulation. The second thing I noticed in 2008 was the increase in the number of people buying houses or refinancing. This is because it was easier than ever to get credit as the housing market was booming, which meant if people were unable to pay their mortgages, then the banks could take back the properties without losing any money. Now it's one thing noticing these little clues, but it's another thing actually taking action and preparing yourself. Between 2007 and 2008, I could have just gone along with the crowd. As a general herd mentality was that everything was great

5:10and nothing would ever go wrong, but instead I started to prepare my investments for the worst. At the time lots of my friends and fellow business owners didn't quite understand the decisions I was making. They may have even seen me as a bit of a coward, but from my perspective, I don't think they understood how much risk they were taking. So if your spidey sense is start tingling, these are some of the things you can do to prepare yourself for the worst. First, I would evaluate and minimize your risk level wherever possible. Personally, I'm not focused on chasing crazy high returns as that's unsustainable for the long term. I just want to be making reasonable gains consistently so my money compounds. I always think about the story of the tortoise and the hare. I don't might sound boring, especially coming from a boomer, but slow instead he does win the race. If you're new to investing, there's a high charge you haven't experienced a real market crash. It can be horrifying to see a portfolio completely half-in-in-value

6:12and sitting deep in the red for a brief period of time. So you have to ask yourself, if you could mentally handle this kind of drop without selling your investment. Secondly, I would start to reduce my leverage. Now, on one hand, leverage is a great way to accelerate wealth, but it can also be very dangerous. The thing is, if a stock crash too far, then your investing platform may issue a margin call, which means you have a limited amount of time to pay off your debts. And if you don't, your brokerage may sell your stocks at the bottom of the market to recover the money you borrowed. If this is something you're considering or even doing, then if I were you, I would be paying some of this debt off. I never use margin, but that's a personal choice and I'm well aware that by not taking on this risk, I'm missing out on some potential profits. The truth is, I've seen too many of my friends go from millionaire status to broke in a blink of an eye, and now I just stay well clear of it. Thirdly, I'd start saving some extra cash in a high interest savings account.

7:14I know I bang on about having an emergency fund of three to five months of your living expenses. Visible puts unlimited 5G data in hotspot in the palm of your hand, powered by Verizon's 5G network, with no contract holding you back. And for a limited time, you can get visible for just $19 a month for 12 months when you use promo code Save6. All the features of Big Wireless Service for half the cost. Tap the banner to switch today. Terms apply, standard rate applies at month 13, see visible.com for plan features and network management details. Instagram teen accounts come with automatic protections that limit who can contact teens, the content they can see, and the time they spend on the app. Learn more about teen accounts and Instagram's ongoing work to protect teens online at Instagram.com slash teen accounts. Hi there, I am fully charged and here to tell you, Toy Story 5 is now on Disney Flash. What are you doing?

8:14It's been too long, Cowboy. Woody, Buzz, and Jesse are back for a brand new adventure with some seriously cool new tech. What? Holy butter scotch! You said it, Jesse. So save your batteries and watch the global phenomenon at home. And the best part, it's perfect for the whole family. Power up your movie night and watch Disney and Pixar's Toy Story 5 now streaming on Disney Plus rated PG. It's but I'm talking about saving even more. I did this between 2007 and 2008. From the outside, it looked a bit strange. The market was booming. By leaving my money in the bank, I wasn't taking advantage of it. However, I noticed that more and more people were getting interested in investing. Which tipped me off that there was a bit of a bubble forming. You see, when everyone starts getting comfortable with the idea of investing, it can be a sign that things are about to pop. As pricing is being propped up by inexperienced investors, the trouble is that at the first sign of a crash, lots of these people panic sell,

9:16which drives the prices down even further, leading to a spiral of doom. Finally, in this stage, I would make sure my investments were properly spread out. This is called diversification, and it's one of the best ways to help with stand-and-market crash. As quite simply per, you haven't got all your eggs in one basket. This is all because you never know what sector is going to be hit the hardest. During the good times, it can be very common for people to do very well with one or two stocks and end up with most of their money focused in only a couple of different companies. Even if they start out with lots of different stocks, it can almost seem silly to put your money into other things when one stock outperforms all your others. Let's use some of my favorite stocks as an example. Say you have a thousand dollars to invest. Now, you could put all of that into Tesla with the hopes of it going to the moon, but if Tesla gets hit the hardest in a market crash, it won't be great news for your money. Whereas investing into a total US stock market fund

10:17would spread your money across multiple different industries. Look, nobody can predict if the stock market's going to go up or continue downwards. However, diversifying goes some way to reducing your risk. Yes, you can't guarantee returns, but at least you're investing in a broad range of sectors. Another great way to diversify while guaranteeing a return on investment is through something called a high yield cash account. So if you look at this, for example, let's say you have five thousand dollars to put by with an additional $250 being saved monthly. Within five years, you'd have earned $3,493 without making a risky investment because the account pays you 5.1% interest that compounds daily. Public offers this account with zero fees or subscriptions required, as well as giving you the ability to invest in thousands of stocks and ETFs with very low fees. I was planning on mentioning public anyway, so I reached out to them to see if they were interested in sponsoring this video.

11:18They agreed on offering a free stock where up to $300 to anyone that signs up and funds their account. Just sign up for public, deposit $20 or more, and enter the code, mark 2024, via the rewards hub in the public app. I'll leave a link in the description if you're interested, along with some other options if you're not in the USA. Number two, the reckoning phase. I like to call it this as everyone gets rudely punched in the face with the truth, and only the ones that know how to navigate it will be able to hold their nerve and make some money. This is the phase where the reality of over-valuation sets in, triggering widespread panic and sell-offs. What I'm trying to get at is in this phase the stock market just comes tumbling down and it's next to impossible to be unaffected. Even my son knew something was happening in 2008 and he was only 10. The number of customers that came into my hobby stores halved overnight. And even when they did come in, they didn't spend anything. On the bright side, I had lots of products

12:19which I owned and my warehouses were full. It was sort of a bit like a safety blanket, I suppose. In 2008, I saw dollar stores opening up everywhere. It was the perfect mixture of demand for cheap goods and supplier products from failing businesses. Even if you managed to predict all the signs of the crash and in phase one prepared correctly, phase two is really where you get tested. It's more about human psychology as most people's initial reaction is to sell their investments and cut their losses. You need to seriously ask yourself what you're going to do when the market goes down. Everyone says their long-term investors until the market crashes. It's very easy to be a long-term investor while everything's going up. If you believe in your investments, then you have to hold firm. To have this kind of belief, you need to know why you invested in something. That's why it's so important to understand the fundamentals of a company before investing in their stock. This reminds me of a story Peter Lynch once shared. He's a well-known investor, and back in the day,

13:21he bought shares in Kaiser Industries when they dropped significantly. The company had zero debt, making bankruptcy very unlikely. He thought to himself, how much lower can it go, but the price kept dropping to under $10. He was shocked but held on, and the stock eventually rebounded to $50. The point is, if you don't understand the company, what will you do when the stock keeps dropping? Probably sell and lose out on potential gains. This applies to index fund investors as well. A study by Fidelity actually found out that if you invested $10,000 in a simple S&P 500 index fund, between the 1st of January 1980 and the 31st of December 2022, you would have $1,082,09. But if you decided to sell your investments and ended up missing the five best trading days, then you would only have $671,051. The crazy thing is that missing out

14:22just 50 of the best trading days brings you all the way down to $76,104. So you might think you're being smart by time in the market, but in the long run, you're probably only going to hurt your own profits. But if you believe in your stocks... Visible puts unlimited 5G data in hotspot in the palm of your hand, powered by Verizon's 5G network, with no contract holding you back. And for a limited time, you can get visible for just $19 a month for 12 months when you use promo code Save6. All the features of Big Wireless Service for half the cost. Tap the banner to switch today. Terms apply, standard rate applies at month 13, see visible.com for plan features and network management details. Instagram teen accounts come with automatic protections that limit who can contact teens, the content they can see, and the time they spend on the app. Learn more about teen accounts and Instagram's ongoing work to protect teens online at Instagram.com slash teen accounts.

15:26Hi there, I am fully charged and here to tell you, Toy Story 5 is now on Disney Flash. Which has been too long, cowboy. Woody Buzz and Jesse are back for a brand new adventure with some seriously cool new tech. What? Holy butter scotch! You said it, Jesse! So save your batteries and watch the global phenomenon at home. And the best part, it's perfect for the whole family. Power up your movie night and watch Disney and Pixar's Toy Story 5 now streaming on Disney plus rated PG. So the long term, there was a lot more to it than just holding firm. In 2008, I saw what the dollar stores were doing. And instead of seeing a competitor, I saw an opportunity. If they could buy things for a bargain price, then it must mean there were amazing deals available. So I went out hunting. I went on a bit of a buying spree over the next couple of years and acquired lots of different assets, including stocks and even entire businesses. I knew that I would be unable to time the exact bottom of the market.

16:27So I invested every week. This is called dollar cost average in. Cash is really king. If you have cash, you can snap up some amazing investments during this time. That's why it's super important to keep a steady income and super charge it with a side hustle during times like these. As the more assets you can invest in, the better you'll probably end up doing in the next phase. The bottom line here is that while some choose to panic sell and lose all their money, others choose to double down and buy the dip. Which you've done correctly can make you a fortune. I feel like I should also mention that some investors like to short stocks, which is basically betting that a stock will go down. It's not something I personally do. However, people like Michael Barry have been very successful with his strategy. If you want to know more about this, then let me know in the comments. I also recommend the big short if you feel like watching an entertaining and informative investing film. Number three, the Phoenix phase. In this final phase, the market begins to recover and rebuild,

17:29rising from the ashes of the crash. It usually pushes above and beyond the last market highs. I noticed that four years after the 2008 crisis happened, just after the London Olympics, things started to improve. Businesses were hiring and money was a bit easier to come by. But even though people started to have cash again, the mentality of not spending carried through for a while, so it was another four years really until everything was back to normal. I've experienced a lot of crashes. I'm talking Black Monday, the dot com bubble, the 2008 financial crisis and the 2020 pandemic. One of the key lessons I took from all of this was that a ball market almost always follows a bear market and that the seeds of your fortune are often sewn in times of crisis and uncertainty. As long as you're able to handle your level of risk and you're buying into the stock market consistently with a diversified portfolio, then you stand a much better chance than most of making some real money. If you want me to walk you through exactly how to start investing

18:32in the stock market, then I'm going to leave that video right up there. But don't click on it just yet. Make sure to subscribe if you want to grow your well. Okay, I'll see you over there. Buddy Buzz and Jesse are back for a brand new adventure with some seriously cool new tech. What? Holy butter scotch! You said it, Jesse. So save your batteries and watch the global phenomenon at home. And the best part, it's perfect for the whole family. Power up your movie night and watch Disney and Pixar's Toy Story Fies now streaming on Disney Plus rated PG.