Even if you’ve turned off the television, put ear muffs on, and won’t leave the house without a blindfold…
You still will have felt what’s coming…
The rumbling inevitability of the impending recession is making everyone just a little bit cray cray.
You’ve probably heard that the S&P — the go-to measure of the US economy and the index of the 500 biggest public companies — is down 22% for the year.
Crypto is even worse off. It’s in free fall without a parachute.
And to make matters worse, the US housing market is walking on a tightrope.
In one foul swoop, the US Fed hiked rates by .75%, cutting the head off the average American’s borrowing capacity by ~7.5%.
But even if you’re not interested in any of this crap and couldn’t care less, your wallet is already feeling the squeeze.
The worst bit is… it’s only the beginning.
Here in Australia, besides the ridiculous energy prices, the outrageous petrol costs, and the insane grocery bills…
It’s just as noticeable.
Even though we’re not at 8.6% inflation yet, the outcome is going to be the same.
We’re almost certainly going into a recession, whether we like it or not.
And with it, there will be pain.
As business owners, this will have all sorts of implications for us.
The ‘V-shaped’ recovery and economic bounce back we enjoyed after COVID is on it’s last legs.
At the end of the day, the reckless spending of our governments has come to an end and the trillion-dollar adrenaline shot injected into the global economy is wearing out.
Like a chicken running around without a head, there is only one way this ends.
The economy is all but guaranteed to contract, and it’s going to hurt those who are most exposed.
So if you’re uncertain about the economic future and what this means for you, I don’t blame you.
But I also have some simple advice.
The best hedge against inflation and economic uncertainty is to make more money.
I know that this advice is almost too simple… but it’s true.
Making more money in your business is the ultimate way to keep score.
It’s the best measure of health for your business.
If your bank accounts are looking skinny, ignoring the warning signs now could be a big mistake.
I’d go so far as saying that putting your head in the sand is downright dangerous right about now.
The only good news is that there are only two ways to navigate it, so feeling overwhelmed isn’t an option.
You can either:
1. Expand your skill set so you’re more valuable to those you serve.
2. Build your assets so you can weather the storm and come out on top.
Now for most, the acquisition of assets in this climate is near impossible. For every 1% interest rates rise, it slashes about 10% off your borrowing capacity.
This leaves you with expanding your skill set as the only viable alternative.
I call this self-optimisation and it’s the best investment you can make… especially in a time like this.
Because while every other asset class besides commodities is going to go down and down and down…
Your skillset is just about the only thing that can easily go up and up and up.
And that skill set can be turned into gold when you know how to play it.
So if you want to learn how to commercialise your skillset, then subscribe to the Alley-Oop while you still can.
This month’s entire edition will be focused on simple ways for coaches, gym and clinic owners to fill their pockets with cash…
Strategies that I’ve personally used at AA that you can action immediately without delay and with minimal effort.
And you don’t have to be an expert economist because these are all simple strategies you can implement straight away.
Best yet, it doesn’t require a stock portfolio, a broker, or an understanding of trading the futures.
As long as you have people you can help, then these strategies will work for you.
It goes to the printers on Thursday, so you’ve only got a couple of days.
If you’re keen and understand the value of a return on investment, don’t sit on it.
Once it ships, it ships, and you’ll miss out on these strategies for good.
– Karl Goodman
