By all accounts, the pandemic is far from over, and if you are lucky enough to be employed right now, you probably shouldn’t be too financially complacent. Last quarter, U.S. GDP, dropped 32%, the biggest quarterly decline in American history. While some people think the economy will miraculously bounce back when we have a vaccine and the pandemic is over, I’m not so sure. There are millions of businesses that will close for good in the coming months and there will be a lot of people unemployed. I think the worst of our recession may still be in front of us. I’m not trying to spread doom and gloom, but trying to encourage caution. I would advise everyone to reduce their long-term financial obligations and remain as liquid as possible. Real estate is almost always a good investment, but it is not the most liquid, so make sure if you invest in real estate, you have plenty of liquid assets that you can tap into if you need them. Small landlords are getting hurt right now because a lot of people are not paying rent. Cash is king, so it doesn’t hurt to keep some money in cash, and if you invest in a business, invest in something with a relatively low-cost structure, especially if you are closer to retirement than you are to getting started. Low cost, high-margin businesses are always the best for smaller entrepreneurs – especially in times like now. Stay liquid, my friends…
Almost everyone, including Democrats, were expecting last Tuesday’s midterm election results to heavily favor Republicans. Many predicted a “red wave” where they would pick up 50-60 seats in the House and 3-4 in the Senate. Joe Rogan said the red wave that is coming will be like the elevator doors opening in the horror film The Shining.
When we invited Gary Vaynerchuk to NAHREP at L’ATTITUDE in 2021, I was mostly relying on input from others. Several members loved his content, but the little I saw online left me underwhelmed. However, I thoroughly enjoyed his presentation at our event, particularly his comments about toxic employees, which he says to dump with impunity.
Selling during a downturn required a more strategic approach, but the opportunities for growth and expansion are available to the savviest of companies. Here are some of the best ideas I’ve read about.
A farmer and his son had a beloved stallion who helped the family earn a living. One day, the horse ran away and their neighbors said “Your horse ran away, what terrible luck!”. The farmer replied, “Maybe so, maybe not. We’ll see.” A few days later the horse returned home, leading a few wild mares back to the farm as well. The neighbors shouted out “Your horse has returned and brought several horses home with him. What great luck!” and the farmer replied, “Maybe so, maybe not. We’ll see.”