8 Ways to Invest in a Crash

How to invest in a crash. I don't think many people argue that a crash is coming. Many people believe a crash is here, and there is a war on your money. There is great political unrest and divisiveness. There is great economic and financial unrest and skepticism. And in a crash, emotions get high, but opportunity also arises. In every stressing hides a blessing. With every downside is an equal upside. So I get asked all the time, how do you invest in a crash? How do you invest with no money? How do you start investing? What should you invest in in these volatile times? And whatever amount of money you have to invest, it's always wise to start now. Never too late to start, always too late to wait. But also, from a contrarian, observe the masses do the opposite perspective, um, the crash, the crisis, the recession, and the depression, the depression offer great opportunities to invest. So I'm going to share with you 8 simple steps and rules which I believe work in investing in a crisis, a crash, or a recession. Now obviously you do your own research. In this session I'm not going to tell you exactly what to invest in. I might give you some examples, um, Mark said he wouldn't invest now, so Mark could miss the best opportunity for investing in the last 12 and a half years. So this is one of the reasons why I'm doing this video, is because, like I said, in every stressing hides a blessing. And anyone who wouldn't invest now is pretty much mainstream groupthink. I made the most money, pound for pound, relatively speaking, in 2008. When I was buying properties between £35,000 and £70,000, and now over £200,000, when we had the crash. So there's great opportunities. So here we go, 8 simple steps how to invest in the crisis and crash. Here we go. One is you want to invest minimal in cash, maximum in liquidity and assets. Right now, cash is not an asset, it's a liability. It is going down in value hard because inflation is significantly more than interest rates. And I don't think you can trust the banks with your money, bearing in mind we're pretty close to a financial revolution. So the paradox you've got is that you want— well, you think you want cash when there's depressed assets, buying opportunities, when property goes down in price and gold goes down in price and assets go down in price. You've been led to believe that you need cash, so you think, well, I better hold cash ready for when assets come down. But it's actually not cash you want to hold, it's liquidity you need. Now let me ask you this: do you know the difference between cash and liquidity? Let me know in the comments if you do, because most people don't. So basic conventional feeling is, I'm not going to invest right now because it's different, difficult, and volatile, and I don't know what's going on. The opportunist would go observe the masses do the opposite, but then they would think, well, I better hold cash so I can buy assets. Yeah, but the problem is the more cash you hold, the more it's getting wiped out by inflation. There's a risk in the banks. So you want minimal cash, protect from inflation, protect from the banks, which leads me on to point 2. Point 2 is you need to be liquid and have liquidity. Now the difference between cash and liquidity is huge. Cash is how much money you have in the bank to invest. Liquidity is how much money you can access from partners, financiers, joint venture partners, liquidating other assets into buying power. So actually, you want most of your cash capital not in cash money, because that's a depreciating liability, but in liquid assets. So gold's liquid, you can, you could liquidate that as quickly as you could go to London to sell it. Property is obviously not liquid at all, could take months or even a year to liquidate. The stock market is actually pretty liquid, within 3 to 5 days you can cash out. Your ISAs are liquid even though you want to keep them for the long term because they're tax-free allowances, they're liquid. So actually gold and the stock market portfolio and your ISA, they're liquid but they're not cash, so they're protected from the deflation and devaluation of cash. But they're not cash, but they are liquidity. But liquidity is also joint venture partners, financiers, lenders, banks who are willing to give you money. So you want to be liquid, you want to be investible, you want to have good credit, you want to have access to people who've got money. Because you know, when there's a big crash, people with money are going to want to get in, and they're going to want to get in hard. But, um, they might not know how to get into property. They might be really busy, really busy, um, running their own business or being successful at what they already do, and they may need you to help them invest and partner up. And this is really common in property— someone finds a deal, someone puts the money in. Now Ryan has said, you know, most of us are broke. Well, Ryan, you don't know anyone else on this live, so you have no idea how much money they have or not. And the reason I tell you that, Ryan, is to open your mind, because you never know how much money people have. Because here's what they don't do. They don't go on lives like this and go, hey, just letting you know, I've got 10 million, anyone want it? People with money don't tell you they've got money, but they've got money. So you have to always assume that people have got money and treat everyone the same, equally, fairly, and well, um, because you never know how much money people have got. And I'm always surprised. I look at people who think I've got money and they haven't. I look at people I think maybe haven't got money and they have. So that's the next thing then is Resourcefulness over resources. So you think if you haven't got any money you can't invest yet, you're watching this video. So it's not just about resources, i.e., cash, access to cash. It's resourcefulness, your ability to speak, promote, pitch, put a good deck together, find a good deal which finds the money, be compelling and attractive to potential financiers and partners. By the way, um, I've made well in excess of £130 million in the last just over a decade, and that all started with £50,000 in consumer debt. And I have tens of millions of property with 7 figures in income, and it was all done no money down with my business partner's funds initially, then his mum, then his stepdad, and then out to private investors. So it can be done. Um, Bryson has said, aren't most investors who have liquid capital also reluctant to invest in these times? Not at all. They're getting ready to invest big, Bryson. Here's the thing, people are a little bit literal and binary. They think, oh, okay, the market's gonna crash, I better do nothing. But you need to start educating yourself and trying to find assets and trying to offer on assets and work out the yields and work out your offer prices and start to offer and start to build relationships. You need to do that before the crash happens. So this is the technical difference. Most people wait until the crash has happened. By the time it's happened, it's been too late. It's just happened. Because you know when markets crash, they don't usually go, oh, we'll give you a bit of warning. Markets, we're going to give everyone a bit of a warning on our crash, and what we'll do is we'll crash nice and gently over a few years so you can take your time and get in there. No, no, no, no, it drops off a cliff. Do you know the property market went down 25 to 30% in my local area within 6 months? So by the time you've seen it happening, it's done. So don't get ready, be ready. Prepare now. Now, um, on point 6, I'm going to talk to you about what, um, real investors do. Look, these questions— I'm glad you're asking these questions, and I say this with the greatest amount of love and respect, but it shows there's not a lot of knowledge out there. Because, for example, you know, professional investors don't just wait until the crash. They buy through all parts of the cycle with pound-cost averaging, which I'll talk about in a moment. So we've covered minimal cash, maximum liquidity, access to capital, how investable and financeable you are. Okay, then the next point, which might be on point 4, is that you want some defensive as well as some aggressive investing strategies. Because in a big crash, obviously you could buy an asset early in the crash and it could go down more, and so it could end up not looking as good of a deal as you'd have thought. So you want some defensive investments as well as some aggressive. So defensive would be, um, low return, low risk, physical— gold, very defensive— because normally when Um, currency is weak, gold is strong. There's a threat of a revolution and the death of fiat currency like there is right now, gold is often strong. So gold is a defensive asset. Well, it's a defensive investment. It's actually not an asset, it's an investment. So gold is physical, it's real, you can cash it in, it's liquid. Rolex Daytonas, certain, um, precious metals and jewelry and physical assets They don't produce income, they just store capital, but they're valuable, they go up in value, and if currency goes debased, then these will usually hold their value. So I would regard physical assets as a defensive investment strategy, and you need a decent amount of defense in, um, a recession or a crash. Investing in your ISA every year, maxing your £20,000 tax allowance, is defensive because The return's steady, it's 5% a year, it's not going to blow, you know, it's not going to win investment of the year, but over 20 years it will do you really well. Okay, the next thing I like to call it is buy, hold, die. So too many people are waiting for the crash to happen and time the market perfectly so they can buy the asset at the lowest possible price, but you can never do that, it's impossible. You only know when the market crashed years afterwards when you look back. So what you need to do is have a long-term hold strategy, because if you're looking to buy the perfect asset, you can never buy the perfect asset. Therefore, you never invest in the perfect asset because you're waiting for the perfect time. Whereas if you have a buy, hold, die mentality— so I invest in ISA, I hold till I die. I invest in property, I hold till I die. I invest in the stock market, I hold till I die. I invest in gold, I hold till I die. Now, if you need to liquidate either for an emergency or or to invest in more assets, you can, but your intention should be buy, hold, die. I know someone who put 6 figures into one stock, it went down 95%. 100 grand down to 5 grand. Well done. Because that is an aggressive investing, not a defensive investing strategy. Okay, so you want some defensive to protect your wealth, and then your aggressive investing should probably be a top smaller percentage. So that might be 5%, 10%, 20%, definitely not 50%. An aggressive might be cryptocurrencies, might be real estate, might be starting your own business and investing into it. That would be a little bit more aggressive. Higher reward, high growth potential, high risk. I can also see a lot of people commenting here talking about what prices are today. You need to think not about what prices are today, you need to think about what prices will be in 10 years. So someone has just said Rolex Daytonas have gone down. Well, in 2005 and '06 and '07 and '08, I was buying Rolex Daytonas for £5,000 and £6,000. I sold one at nearly £30,000. Yeah, they've dropped a bit. So if you want to buy a Rolex today and sell it tomorrow, you're never going to get in. But if you, if you hold a Rolex Daytona for 10 or 20 years, they're That thing's gonna double or triple. It always does. In 1979, you'd have paid under £1,000 for a Relic Daytona. I know, I've got one. My birthday is 1979. I bought my birth year Relic Daytona. That peaked at £85,000. All right, it's dropped a bit, but that's what happens with prices. You've gotta look longer term into the future. You've gotta think buy, hold, die. 'Cause a lot of you are saying, oh, they're going down, I'm not gonna do anything. And then the market will bottom out and you didn't do anything 'cause you were waiting for them to finish. And then it finished, and then you didn't do anything, and then you get in too late. This is what the masses do. Observe the masses, do the opposite. Okay, next thing is you've got to know the difference between an asset and an investment. Do you know the difference? Let me know in the comments. Let me know if you know the difference between an asset and an investment. I'll give you a minute just while you're thinking about that. I'm actually really pleased that, um, watches are coming down in price. Property's going to come down in price, um, because I want to buy low and hold high. You know, if you wanted to trade, what would be the fundamental rule of trading? Buy low, sell high. But me, I'm buy low, hold, die. So I actually want to buy cheaper. Now, if I only ever buy one property or one Rolex Daytona, I've got to try and time it the best. But if I'm always buying properties and watches and gold and stock market and assets, and I'm always maxing my ISA, I do it every year, I ride the cycles, I pound cost average, and in the long run the market always wins. So good assets like the stock market, like Rolex Daytonas, like gold and precious metals, like property, they always beat inflation and they always go up. And I, I heard this statistic, and I'm I'm going to give you— it probably won't be exact, but, um, apparently your chances of investing for profit if you trade over days, weeks, or months is virtually 0%. If you invest for profit over 10 years your chances of success are almost 100%, and then it slides in between. So if you wanted to do day trading, your chances of success would be very close to 0%. If you wanted to do 20-year investing, your chances of profiting would be almost 100%. So you've got to let the market do its thing. Stop trying to beat it and second-guess it because it has too many unknown variables. Okay, so this leads me on to my next point. I hope you're finding this useful, by the way. Let me know if you're finding this useful. My next point is you've got to be ready for the recession and not wait for it, because if you wait for it and then it happens and it happens hard and fast, you'll miss it. You will blink and it will be gone. My prediction is when the market crashes, it will take 4 to 12 months to go from peak to almost bottom. That's my prediction. It's what happened in 2008, dropped 25 to 30%. In 6 months. It's like a vertical slide with Vaseline on it. So you have to learn now, start investing now, get— start tracking prices, start understanding asset classes. But the important thing is what I call pound cost averaging. Well, when I say I call it, I didn't make this up, but this is what it's called. So pound cost averaging is where you invest through all parts of the cycle. So if you had 100 grand and you put it all in now in one class, you could time that really badly and you could end up having 30% or more of a drop. Whereas if you invested up 10,000 a month for the next 10 months, or 5,000 a month for the next 20 months, or 10,000 every 3 months for the next 4 years, then you're gonna average out in the market. And in the end, you spread your risk and you'll probably make a better return, or at least there'll be lower risk. It's called pound-cost averaging. It's de-risking how you invest. So you've got to be ready for the recession, which means starting now, because it's coming. Okay, the next thing is you want to make sure that you invest for income and know the difference between an asset and an investment. And you want some defensive investments and you want some assets. So an investment is where you put your money for a future return, but it doesn't produce income. So your own home is an investment, but it's not an asset because it doesn't produce income, but it is an investment. Gold is an investment, but it's not an asset because it doesn't produce income, but it does protect your money and go up in capital value. Rolex Daytonas are an investment but not an asset because it has no capital, has no income, but it has capital value. So sometimes it's actually good to invest in an investment, like a nice home that's going to double in value every 10 to 15 years, which you can live in and you can have a home office and you can build your empire from, like gold and Rolex Daytonas and physical and precious metals and assets. Which even though there's no income stream, it's a defensive protection. It will go up in value. You know, the government and the taxman and your divorce can't get it from you. But then an asset is something that produces income, and you've got to, you've got to also have some of those. So I have books that produce income, membership sites that produce income. I've got quite a lot of Lego. Someone's just put Lego in the comments. I've got quite a lot of Lego. That's not an asset, it's an investment. But property is an asset and an investment. Your business is an asset as long as it produces income. Books and audiobooks and information and content, these are all assets that produce income. And you want to build multiple streams of income without spreading yourself too thin. So maybe you want an information business, invest in real estate part-time, and then maybe your job or one other asset. So multiple streams of income, but build them slowly. Build them layer by layer rather than trying to do 10 at once. Max I think you can really put your time into in any one, um, moment in space and time would be 3. Um, 70% in your main asset, 20% in your secondary asset, 10% of your time in your third asset, so that you're diverse but you're not spread too thin. Because there's a balance between being diverse and spreading your risk and having multiple streams of income, but then being overwhelmed and balancing too many things and not making enough money in any of them. Okay, so quick summary, and if you found this useful, I wonder if you wouldn't mind sharing the video. I want to help as many people as possible get better financial education and knowledge. I'm on a mission to help millions, and, um, I am reaching tens of millions of people now, um, sometimes a month, sometimes a year. Um, and so when you share, that just helps me get my message out to as many people as possible. So, um, here are my 8 fundamentals of investing in a crash or crisis. Number 1, you want to hold minimal cash because it's depreciating and devaluing. You want to protect your cash from inflation and the banks. But number 2, you want to be as liquid as possible, which means converting cash assets, which isn't an asset, into liquidity assets, things that are liquid. You can get your money in 3 days to a week. Um, the third thing is you want some defensive investments like gold, like physical assets, like you're maxing your ISA every year, like putting your money in the stock market in a well-managed spread fund and leaving it there. And then also you want some aggressive, like starting a business and, you know, hustling your way to building income and buying property below market value when the market drops. You want a balance of defensive and aggressive. Number 4 is you want to be liquid and understand the difference between cash and liquidity. And most people think cash is liquidity. Cash is not liquidity. In fact, cash is often not liquidity because you're limited. Let's say you had a million quid. Well, in London, that'll buy you 2 properties and you'll still need mortgages. And then you've got no money left, and then you're not liquid. So liquidity is access to cash, not how much cash you have. Financiers, joint venture partners, lenders and banks, and people you know who've got money who would back you and partner with you. Number 5 is knowing the difference between an asset and an investment. An asset produces income, an investment is for a future return, but it is a capital store, not an income generator, and you probably want both. Number 6 is you've got to be ready for the recession, which means you've got to start learning to earn now, start putting in offers now, start watching prices now, because if you wait till the crash, you'll miss it because it happens quickly. Number 7 is you want multiple streams of income but not too many so you're spread too thin. And number 8 is buy, hold, die. Don't, don't own anything for 5 minutes that you wouldn't for 5 years. Don't own anything for 20 days that you wouldn't for 20 years. Because even if you make mistake, if you buy, hold, die, you will always beat the market the longer you hold your asset. So I hope you found this session useful on how to invest in the crash. If you would like 10 hours, 10 hours of specific tactical content on how to invest, on the 9 different asset classes, on de-risking, on diversifying, on getting the best return, on learning about the different asset classes from one of the best entrepreneur investors in the country, then there is a 10-hour How to Invest series now live on my Rob.team platform. And instead of you paying $200 plus for it, which it would be for a 10-hour online course, I'm going to give it to you completely for free when you join Rob.team. So if you'd like the 10-hour, 9-module How to Invest series, learning on the 9 major asset classes, the high risk, the low risk, diversify without being spread too thin, and invest your own money and manage your own money— if you'd like to get that 10-hour masterclass completely for free, just join Rob.team. Rob.team is my financial education platform. It will cost you less than 20 pence a day. 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How to build multiple streams of income masterclass. It's all in Rob.team. Anyway, look, I've said my bit. I hope you found the content useful. Um, by all means, save this video and go watch the replay on the 8 ways to invest in the crash for the best return and to take advantage of it. And for much further ongoing education, just join Rob.team. No contract, cancel anytime. Hundreds of hours of courses, resources, Zooms, and masterclasses, live and recorded. For less than 20 pence a day. So type in rob.team, rob.team, into any new window on the internet right now. Anyone can afford this. Anyone can save 20 pence a day. Anyone can save 6 a month. And remember, there's no risk to you because you can cancel anytime. Thanks for tuning in. Really appreciate you all. And for those of you that tune in and watch me, you know, in other countries at 2 AM like Bryson is here, I just want to say thank you so much. Really appreciate you. Lots of love to you. Really means a lot to me. Thank you. And remember, if you don't risk anything, you risk everything.