A new survey reveals around half of American households are bracing to lose everything they have this year.
If the big banks are going bankrupt and are falling like dominoes, it should not be surprising. While these statistics may be shocking to some, and could certainly be twice as bad as in 2008, there is plenty we can do as individual investors to intelligently insulate ourselves from the damage. As well as to help others at scale.
The New Recession
According to this new survey published by Yahoo, close to 70% of Americans believe that we are already in a new recession in 2023. In spite of the fundamentals or other official data that may be published to refute that, the sentiment can often be self-fulfilling. Just as we see with emotional sell offs in the public stock market or runs on deposits in banks.
More than half of those surveyed fear they will lose everything in a new recession. To put that in perspective, some of the most dense areas of foreclosure in the 2008 mess saw as many as 1 out of every 4 housing units receiving foreclosure notices. This sounds like it would be 2 times as bad.
If you compare the dollar amounts involved today versus then, 2008 will look like spare change in terms of losses.
Diversification & Managing Your Money Well
Many of the big crypto company and bank failures we are seeing are the result of absolutely irresponsible management. Whether there was fraud involved or just incompetence, the result is the same.
One of the most obvious takeaways from all of the recent bank failures is that you don’t want all of your eggs in one basket. Don’t have all of your cash emergency savings in one bank account. That’s just asking for trouble in so many ways.
Of course, the same applies to our investments as well. You don’t want all your money just in an IRA, or one brokerage account. You don’t want everything in stocks or municipal bonds. Counties and cities will go bankrupt like they did in the last cycle too.
While a lot of capital is fleeing to the safety and cash flow that real estate investing can provide, it is important to diversify here too.
We Can Help Those That Are Losing Everything
As real estate investors, we are uniquely positioned to be among the best to help the millions of American households that are in crisis, in addition to their local communities and the nation, and national economy as a whole.
Most obviously there is the opportunity to step up and help bail out those who are going to lose their properties by buying them.
On the flip side of that, we can help millions find new housing. Especially affordable apartments and homes that they will be able to maintain during this phase of the economy. That includes renters and home buyers.
This part of the cycle is not going to last forever. We want to skillfully navigate through it, minimizing losses, and optimizing for upside potential. This while also positioning to emerge strong as the markets rotate.
Find out more about investing in secured debt and real estate, go to NNG Capital Fund.
If you are an Accredited investor and would like to learn more about how to become a Capital Partner with NNG Capital Fund, Click here to set up a discovery call today!
Photo by Andrea Piacquadio