5 Ways to Prepare for the Next Big Financial Event

I have stopped calling the 2008 financial event a crisis. I call now call it an event. You have to understand that what is a crisis to some people is an opportunity for others.

If you think of 2008 as an event, it makes so much more sense. Calling it a crisis only makes you see one side of the story. Calling it an event makes you open to see all sides of the story.

I am sensing that an event like that of 2008 is around the corner again. And it will be way more serious than 2008. This is because the global economy faces two threats at the same time - the recession (or depression) threat and the inflation (or hyperinflation) threat.

This will prevent the central banks from printing money like they did in 2008 to kick the can down the road. One date to start keeping watch of these things is March 11, 2024.

As things stand, more banks may run out of steam around the middle of the year. It is a great time to profit though, if you know the game you are playing.

Here are a few ways to prepare yourself for the next big financial event:

1. Follow me on Twitter (now called X)

I publish this newsletter 3 times per week - Mondays, Wednesdays, and Fridays. A lot can happen between those days. If you are an active investor or you manage a sizable portfolio, you should follow me on X.

This is where I can easily show you how things are moving along in real-time. And also, I'll show you who is lying, who is too early, and what is precise.

2. If you want to know what happens next with bitcoin and crypto, get my crypto investing book

Crypto is definitely in the bull phase. What comes after the bull phase?

This is something you should pay attention to if you have a sizable bitcoin or crypto portfolio. As of writing, bitcoin has already hit 63k and is poised to go higher. I think it will keep going higher for now.

But it won't keep going higher forever. The cycle will move to the next phase. But not yet for now. If you want to be ahead of the curve and be able to tell by yourself, get the crypto book.

3. Position yourself to take advantage of the downturn

I began asking around this week where I can buy large puts on stocks. Just for the fun of it. I believe a market downturn is very near.

I figured one may as well have fun watching the downturn. If you are a pro and you want to short the market when the time is right, get yourself a platform where you can buy puts.

This is just my guess. At most, by June, the US market should begin to crack. However, I am curious to see how the market will get through March.

4. Take profits on stocks if you haven't done so

Rebalance your portfolio. On bitcoin, depending on several factors, we should be able to get $75,000 or more in this cycle before we switch to the next phase.

For some reason, I am skeptical about the price reaching $100k. Too many people are looking forward to it, and so I find it to be a trap. However, I don't know what will happen. The all-time high for this cycle could be 102k or something around that range. It could be even higher. But the next phase will be just as drastic.

5. Have cash

The importance of cash during this period cannot be overstated. Also, have more than one bank account. Banks will fail. And no one knows which ones will be allowed to fail and which ones will be saved.

Also, there will be opportunities to buy great assets at ridiculous prices. Having the cash to be able to do that goes a long way.

There is something that happens every big financial event. Banks and credit businesses that have a lot of bad loans will become vicious to their customers to stay alive. Don't put yourself in a position where you can be preyed on.

For example, if you have lots of good debts and lots of cash. Make sure you put your cash out of the reach of your creditors. When things get tough, good people who are paying off their debts on schedule but who have a pile of cash somewhere will be targeted.

This is called a cash grab. It happened in the 2008 event. And it will happen again. Just a bit of warning to play smart.

Conclusion

Of course, none of this is financial advice. And the suggestions are contextual as always. The most important thing is to realize where you are with respect to the market and play smart.

Be informed and be prepared. The bull market will not go on forever. A downturn is coming and it will make some people very rich. I intend to be part of those people who get significantly richer.

But in the meantime, enjoy the bull run and keep your ears on the ground.

Stay rich.

P.S. Read what the current earning season says about the economy