Jaspreet Singh: How To Make Millions When You See Chaos in the Economy
Written by
Heather Taylor
Edited by
Molly Sullivan
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.
20 Years
Helping You Live Richer
Reviewed
by Experts
Trusted by
Millions of Readers
Recessions are a part of our economic system. In money expert Jaspreet Singh’s latest Minority Mindset video on YouTube, Singh asks what happens next when you see a recession and how you can capitalize on it.
Smart investors love how recessions create opportunities for buying investments everyone else is selling at a discounted price. Here’s how you can make millions when you see chaos in the economy.
Recessions Share One Common Denominator
Recessions all share one common denominator which is the acronym POOP. This stands for Panic leads to Overselling leads to Opportunity leads to Profit.
Here’s how each letter of POOP breaks down. For the first “P” creating Panic, Singh asked if you were running away getting scared or buying when the stock market was crashing during the COVID-19 pandemic. Overselling was created when people wanted to get out of the market, thinking they may never leave the comfort of their homes again. Within a matter of days, the stock market fell by 30% and created a buying opportunity — or Opportunity, per the acronym. Finally, Singh said the Federal Reserve opened the money printer, unleashed a tidal wave of qualitative easing and the stock market rallied at the fastest rate ever, allowing some investors to Profit significantly.
What Singh doesn’t recommend is getting caught up in panic. Otherwise, you end up becoming the person overselling. The people who make the most money understand what is happening, stay calm and find the opportunity.
What Smart Investors Do During Chaos
Throughout the video, Singh cites different financial recessions over the decades including the burst of the dot-com bubble and the 2008 housing crisis as moments where many believed certain assets were done for and would never recover.
The job of a smart investor, Singh said, is to see which assets are worth going into and which ones are not. When you see panic and overselling, look for good investment opportunities and buy them. Smart investors need to be financially educated so they understand the difference between good and bad investments.
Investors also need to be prepared. In order to capitalize on opportunities, Singh said you need access to money. By having both financial education and capital, you can use them together for opportunities that come your way.
Are You an Active or Passive Investor?
Do you know how to deploy, or invest, your money? Singh recommends asking yourself not which stocks you should buy, but rather what type of strategy you want to use as an investor. How will you invest your money in a way that aligns with your goals and gives you the best return?
One approach is considering whether you will be an active or passive investor. Figuring out your answer to this approach means asking yourself how involved you want to be as an investor. Active investing means investing in individual companies. Passive investing is more automotive to “set and forget it” when it comes to your investments.
Singh said those who decide to become active investors need to figure out if they’re willing to go through investing’s emotional ups and downs without panicking and if they have the time and interest necessary to keep up with their investments. If you choose passive investing, you’ll need to figure out what types of funds you want to invest in.
You should also know how you want to be paid, with Singh using the examples of cash flow or appreciation. Once you understand these things, you’ll know where you want to invest your money.
Will Investing Alone Make You Rich?
No. According to Singh, this is a common misconception. You need to make money, build the money up and use the money to buy assets to get paid and be reliant on the assets producing money for you.
Your goal, Singh said, is to figure out what type of investor you want to be and how you want to be paid. These decisions will help guide your investing decisions in times of chaos and calm alike.
More From GOBankingRates
