Recession Above Water

by august 2023 we'll be in the middle of

a recession it's already here you're

just not feeling it yet

72 of economists expect a u.s recession

by the middle of next year with us

elections coming up in november the

government is trying really hard to make

things seem like it's business as usual

while everyone with half a brain is

already feeling the pain and anxiety

we had a pandemic a war the highest

inflation rates in recent history the

fall of china's biggest real estate

developer and supply chain issues all

around

the bill is due

your mortgage or your grocery basket has

almost doubled in the past two years

while your salary barely saw a 5 bump

watch until the end of this video for

your opportunity to get ready

here are 15 investments that are

recession proof

welcome to alex.com the place where

future billionaires come to get inspired

number one consumer staples

no matter what the economic climate is

there are some things that people will

keep on buying and when we say consumer

staples think of procter gamble colgate

palmolive pepsico nestle l'oreal

unilever and anything else that you use

day to day look at what you purchase out

of necessity not because you want to no

matter how bad the economy gets you're

still going to buy toilet paper

find the companies that make those kinds

of products and buy some stocks

here's a snapshot of the consumer

staples versus the s p 500 in terms of

returns after the 2008 crash

number two

telecom

if there's one thing this generation has

taught us it's this you can go without

food for a few days and call it extended

fasting but don't you touch my internet

telecom is growing at almost 10

year-over-year and we're more dependent

on it than ever when the recession hits

many people in traditional roles will be

left out of a job and will try to shift

to other job prospects work from home is

becoming the norm

in a recession companies will be

downsizing cutting down on the number of

offices they maintain because rents will

be too expensive so even more people

will work from home and as a result the

telecom sector will continue to grow

number three cheap fast food

fast food consumption is reversely

correlated with the economy when people

have more money they try to eat at

fancier restaurants when the disposable

income drops it's back to dining with

the clown and the king mcdonald's burger

king subway kfc dominoes taco bell etc

they'll all do well in the recession you

know what won't do well the fast food

joins selling 15 burgers delivery

services will also be affected people

will still order in but at a much lower

rate because post mates and the likes

have gotten really expensive so it'll

make more sense for people to go to a

drive-through on their way home than sit

on the couch and order in

plus these businesses have solid

fundamentals here's a list of 20 fast

food franchises in the u.s ranked by

annual revenue

number four grocery stores

especially price conscious stores

historically do really well

walmart costco kroger aldi sam's club

little dollar store etc now here's where

walmart and costco's performance compare

to three popular consumer staples

chains like whole foods usually get hurt

the most as consumers become more price

conscious

number five

self-education or mastery

as a great rule in life nobody can take

away anything that you've already

learned which is why investing in

yourself is definitely recession proof

the more financially educated you are

the less of an impact a recession has on

both your financials and your mental

health this investment is split into two

because you can either one acquire a new

skill that will allow you to access new

opportunities that you didn't have

access to before or two master a current

skill so that because of your ability

you are more in demand than ever

this recession is quite different than

previous ones because for the first time

remote work has been embraced to this

extent outside of your current job many

individuals will behave as consultants

or freelancers in respect to other

projects if you have a job and wish to

upgrade your skill set so you no longer

act as an employee but as a business

you'll be thrilled to hear this so later

this year we'll be releasing a new

course called freelance mastery where

we'll teach you everything you need to

know from moving from employee to

freelancer and acquiring clients from

all over the world go to alux.com

freelance and sign up to the waiting

list so you're notified when we launch

our promise is this if you don't earn

the money you paid for the course from

freelancing we'll give you your money

back no questions asked this is the

course that some of you have been

waiting for and we can't wait for you to

finally experience it

number six gold and precious metals

gold is a hedge against inflation and

economic downturns it's actually the

favorite hedge of the unsophisticated

investor

silver is a close second and you'll see

more and more old money voices talking

about diversifying into metals in the

next few months

why well in order for countries to get

out of recessions governments need to

stimulate the economy their favorite way

of doing that is by throwing money at it

which increases the financial supply and

since gold is a fairly scarce asset its

value goes up the problem with printing

more money is they've been doing it

already for the past few years which

leads to record numbers of inflation if

you're young maybe look at some bitcoin

as an alternative play as we see it as

gold 2.0

number seven technology stocks

tech stocks have taken a beating this

year with many worrying that tech

companies are becoming too big but look

toward the future will google still be

around in 10 years

probably will amazon keep thriving even

in a recession probably look at the tech

companies that you use every day because

if you use them it means others are

doing so as well it used to be that tech

came second to retail but we believe

we've crossed the point where tech is

the main play in terms of massive

returns every recession will be a great

opportunity for new companies to be born

the 2008 crisis gave us airbnb uber

venmo whatsapp groupon slack and more so

keep your eyes open

number eight pharmaceutical stocks

recessions are a thriving ground for

pharma companies especially with the

bump that they've had during the

pandemic you could go straight pharma

and invest in the likes of pfizer or you

could go the retail route with walgreens

cvs or rite aid the entire pharma sector

is up for disruption mark cuban's cost

plus has caught our eye it's an online

pharmacy that sells generic versions of

popular drugs at a fraction of the cost

and like him there will be others

number nine utility stocks

no matter how bad things get you still

need to turn your lights on there's an

entire investing strategy into holding

utility stocks in your portfolio one of

the best performing stocks in our

portfolio is nextera energy one of the

largest electricity suppliers in florida

over the last five years it's returned

21

per year and over the past 10 years the

annualized return sits at 19.2 percent

basically you want to look at energy

producers energy distributors energy

service operators natural gas suppliers

water and sewer utilities

raw prices might fluctuate but the

demand is only growing

number 10 blue chip art

this might come as a surprise to most of

you but art especially good art is one

of the best ways to protect yourself

during recessions blue chip art is

scarce and has demand from people who

aren't affected by recessions it's

actually the other way around as rich

people get even richer during recessions

the art market has been consistently

outperforming the s p 500 real estate or

gold for the past 25 years

and not only that art is a good

performer even in inflationary periods

now you might be thinking but hey lux

what do i know about fine art or how am

i supposed to afford a picasso or a war

hall well that's where our friends at

masterworks come in

masterworks is a platform that allows

everyone to invest in high-end art

instead of buying the painting on your

own they break the ownership of a piece

into shares the same way a company does

with stocks and you can buy shares in it

and you can sell or buy these shares at

any time fractional ownership is one of

the biggest trends that we are seeing

and the way masterworks has executed it

in the art space is really inspiring

especially considering there's no

minimum investment amount and the

platform has also allowed us to learn

about the trends in the art space and

see just how profitable the art market

can be now we mentioned masterworks in

the past so when they reached out

looking to sponsor this video it was a

perfect match there's actually a waiting

list to get onto the platform but since

you're an alux or you can skip it go to

masterworks dot io slash cd and see for

yourself how investing in art might be

your way out of the upcoming recession

number 11

evergreen businesses

we love businesses with strong

fundamentals that offer a great product

to a recurring audience evergreen

businesses are businesses that have been

around forever and will still be around

20 40 60 years from now home depot will

probably survive a one to three year

recession think about your kids although

in a recession you might need to tighten

the belt you'd still have your child go

to daycare or school if one of your

grandparents passes away you would still

use the services of a funeral home some

businesses will never go away because

the demand for them is continuous we

actually did a video on evergreen

businesses a while ago so click in the

top corner if you'd like to see a list

of evergreen businesses

number 12 commodities and raw materials

if you're familiar with the commodities

market then you're in luck they might

not be as sexy as cool art but wheat

soybeans and corn remain strong

investments the same goes for cotton as

the textile industry will still thrive

but be careful because not all

commodities are created equal

coffee for example vanilla and spices

usually get hurt as the demand for them

drops in a recession

number 13

life insurance

insurance but even more importantly life

insurance is one of the booming plays of

a recession you might not realize this

but rich people use life insurance very

differently than you would expect

because for them life insurance is a

vehicle to build wealth it's like a

tax-free personal bank

basically instead of putting their money

in the bank they put it in life

insurance policies and then borrow

against it tax-free the entire mechanism

of using life insurance as a bank is

fascinating to us and it certainly needs

its own video in the future stress and

financial hardships are common in

recessions insurance companies do really

well so they might fit your portfolio

nicely

number 14 hedge funds

for those of you in our community who

are already well off ask your financial

advisor for a list of local hedge funds

that did well in the past two recessions

and start making some meetings basically

these entities are looking for any

opportunity to make as much money as

possible in the shortest time frame

hedge funds get their names because

they're betting strategically against

the market some of you have seen the

movie the big short well there are

several hedge funds that foresaw the

fall of the housing market and made sure

to capitalize on it michael bury carl

eichen john paulson and ray dalio are

just a few of the hedge fund managers

who we've learned plenty from

number 15

automation

this last one on our list is automation

and we believe that automation very much

like thanos is inevitable recession

periods only accelerate the adoption of

automation because businesses are doing

all they can to be cost efficient so

they can stay in business there are

plenty of new automation companies out

there doing incredible things

software will eat the world and robots

will do all the heavy lifting

think about it

prices have gone up but wages haven't

people will soon stop working and demand

higher wages and this creates an

incentive for companies to invest even

more in automation

when you think about it objectively does

it make sense for a chain like

mcdonald's to increase their minimum

wage to 25 so they have people taking

your orders or do they install two more

of those touch screen kiosks that get

the same job done

the only way you make sure to thrive in

a recession is to expand your time

horizon

recessions are cyclical there's always a

new one coming they're a natural part of

the economic cycle which makes us ask

you

how long do you think we'll be in a

recession leave your answer in the

comments and as for those watching until

the very end yes yes we do have a bonus

vice industries

yep alcohol and tobacco sales jump

through the roof during recessions

people want to escape and forget about

their financial troubles through cheap

alternatives and this leads to vice

consumption which benefits companies

like philip morris and friends

during recessions people start playing

the lotto more

everyone is in pursuit of more money

because money isn't as abundant in its

purchasing power as it used to be

this recession isn't going to be your

usual market correction panic and then

shaking it off elon musk himself has

predicted an 18-month recession and our

internal data shows similar market

patterns. Thanks for Watching and good Luck..