“Now What🤔?!”. What’ s next? Back to the old or to a new normal? Bankruptcies, unemployment, uncertainty galore 😔 OR the greatest opportunity to “Thrive ” 🤫...
Now What?
So we all quarantined in our “plastic bubbles” keeping our distance, taking precautions, washing our hands to near sandpaper quality & made it through, NOW WHAT?! This post is inspired by a meme we got from a friend depicting that unforgettable iconic scene in Finding Nemo at the end...
The phases of grief
We all go through the different phases of grief when facing a terrible situation of loss/fear. We certainly recognize all the great loss, pain, fear and devastating circumstances many people are facing worldwide right now. As we write these words we realize many are fighting for their lives battling this COVID-19 virus, losing a dear one, losing their business, losing their job or losing their home. We all will in some way process this global pandemic trauma through the Kubler Ross Grief Cycle.
The faster we arrive at acceptance of that what we have no influence over and cannot change, the faster we can set a new course. With acceptance comes clarity, with clarity comes new problem solving & integration ideas. Ideas that give us the power to change things we DO have control over and that ultimately leads to joy, purpose, direction, a positive sense of self and a brighter future! 🤗
How is this going to play out?
Before we can craft a master plan for when we get out of this global health and financial upheaval, we first need to understand what is happening and how this is going to play out. Please realize that we won’t be going to the “Old-Normal” anywhere soon.
As we always emphasize on our blog - Through education, gaining true knowledge and a deep understanding you will always be able to beat panic and set yourself up for success.
History shows that a pandemic comes in three waves. As the picture below suggests we can expect this COVID-19 virus to emerge even more viciously back in fall and next year spring only then will it fade out as all pandemics eventually do.
In order to fully understand what is happening financially on a global scale, we urge you to fully understand that EVERYTHING in life comes and goes in waves. To easily get the financial implications of this current flow of events, follow the tread to our series on financial cycles & waves….
The great long term cycle analysis institute - Dent Research predicts that the financial curve following the COVID-19 pandemic, will play out as follow:
What both graphs suggest is that the worse is yet to come financially. So how can we prepare to avoid getting cooked, roasted, sliced and devoured by what is yet to come?😵
We have to understand that we are currently in the Winter Financial Cycle. We have to acknowledge and accept the fact that we are facing a 2-year downturn depression. This means that all Asset Markets (real estate, business, commodities, stock-market) are about to be deleveraged. Implying that all asset markets that have been growing extensively on Central Banks’ fake printed money (quantitative easing) are going to face a “BIG RESET”.
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Big Reset
Real Estate – Because of many defaults on mortgage payments, prices will drop substantially (up to -24% or worse case -51%), probably around the values of 2007/2008 when the global prime market crash occurred.
Stock Market – The stock market will crash in waves ranging from -40% to -89% of its current value wiping out savings & pensions on its way down.
Gold – Commodities like Gold (-33%), Silver ( -50%) will also see a substantial drop because they are great hedges during Inflation (Summer Financial Season) but awful hedges against Deflation (Winter Financial Season).
Business – This depression is all about the deleveraging of the enormous expansion of Businesses made possible by the “Internet Era” as we are currently also exiting the 5th Kondratieff Wave of Information Technology.
How on earth can we survive such devastation 😰🥴? Well, first we need to survive.
Once we survived by avoiding being hit by the “shake-off” of the financial system, now we focus on how to thrive….
Thrive Not Just Survive
The thriving comes in knowing the timing of the different asset markets. Wait for the full massive decimation, close to or right before the ultimate low point has been reached to start buying on a bargain. This is when you should put all your money to work and invest heavily in all assets again. This is what they call the “Sale of a Lifetime” because the next winter downturn won’t be around for another 90-100 years or so.
If you ever wanted to start or buy a business now is your chance. If you are eager to invest in Real Estate, well the cards are in your favor. If you are craving to own some Gold or Silver it’s all going to be on a bargain soon. Even if you are considering dipping your toes in the stock-market effectively in 2022 you can start making a fortune ask Joseph Kennedy, one of the many who became millionaires after the big depression of 1929.
Watch the 6th wave 😁!
But wait there is more! The utterly most important thing to also realize is that we are entering a completely new era - the 6th Kondratieff Wave. The areas of nanotechnology and biotechnology are of interest in terms of increasing the productivity of resources and energy in the 6th Kondratieff cycle. Both of these segments could play major roles in the new structural cycle by using new materials (and/or properties of materials) and new processes to make many sectors more environmentally friendly through the use of fewer resources and less energy.
In addition, the healthcare sector could also be an important engine for economic growth in the 6th Kondratieff cycle. Health is now viewed less as a “condition” than as a resource and less as a cost factor than as a driver for economic growth and employment. As a result of this paradigm shift, the economic significance of the industry is expected to continue to grow also because of the Demographic shift of Baby Boomers coming of age and for the first time in generations a much smaller and less wealthy demographic group following the previous generation - The Millenials.
This is why billionaire tycoon Bill Gates amongst many of his peers is selling all his shares in Microsoft (exiting 5th Wave Industry- Information Technology) to invest in new ventures to develop vaccines (6th Wave Biotechnology.).
In upcoming blogs, we will dive into more details on how to make money in the new era and new seasons. We will dive deep into what specific indicators to look for, why and where to invest. We are going to look at every asset class and we will also give step by step action plans to execute on the asset-specific strategy.
Always wanted to start a business? Buy real estate? or pick up some stocks? Well now is the time. But always consider the waves! So you don’t find yourself powerlessly floating in the ocean in your plastic bubble risking to end up on the sushi menu…🍣🍥😅
Now that you understand that everything in life comes and goes in waves, which seasonality we face for all assets and how things are most probably going to play out into the "New Normal". You can adapt, plan your new life and look forward to a bright future. The ocean keeps sending waves to the shore and the songbirds sing in the spring season to help (money) trees grow leaves 💰.
It is all still here. You are still here. Life itself was always the gift…
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