Even mere millionaires make money during recessions, by buying the dip.
For a net liquidity of $1mil, with 90% stocks 10% cash (bonds suck right now). When covid hits the market drops 40%, a smart man would put half his cash in for the inevitable bounce-back. His 90% allocation (stocks) were up 16% for 2020, and his $50k buy-the-dip netted him another $30k-$50k depending on his market timing. Overall he made $200,000 in 2020 on his net worth alone, without risking anything really. And he is well positioned for the analyst-predicted boom in 2021.
Even mere millionaires make money during recessions, by buying the dip.
For a net liquidity of $1mil, with 90% stocks 10% cash (bonds suck right now). When covid hits the market drops 40%, a smart man would put half his cash in for the inevitable bounce-back. His 90% allocation (stocks) were up 16% for 2020, and his $50k buy-the-dip netted him another $30k-$50k depending on his market timing. Overall he made $200,000 in 2020 on his net worth alone, without risking anything really. And he is well positioned for the analyst-predicted boom in 2021.
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