This month, we’ve been spending a lot of time focusing on – you guessed it – money. One of the things that I see coming out of the current downturn is a lot of opportunity, especially for those who have the cash.
Now, this isn’t anything new – every time the economy drops into a recession, people still make money, but your name won’t need to be Rockefeller to be able to shop like one.
Here’s the deal: right now, most folks are nervous, so they aren’t buying anything besides essentials. In the last weeks, we’ve heard the rumblings from a lot of luxury brands like Neiman Marcus that simply aren’t selling much of anything. It’s the same with cars, boats, fashion, you name it.
The housing market might survive with a minimum drop in prices, simply because their aren’t a lot of them being built, but the corresponding loss of income for so many people means that inventory in a lot of markets is going to stay stable – but people are still going to have to move, whether it’s for work or to downsize.
Now, this is easy to understand – for the last six weeks, we’ve been told how bad things would get.
People stopped buying everything that wasn’t essential.
A lot of workers lost their jobs.
Unemployment has spiked.
401(k)s are struggling.
On the other hand, though, if you have the assets, these next few months might be an ideal time for purchasing bigger ticket items that you might not have otherwise.
Maybe that house you’ve been thinking about.
Maybe more car than you once thought possible.
Maybe just a once-in-a-lifetime trip for you and the family.
All of it is within the realm of possibility now, because the companies that are doing this type of business are going to be actively looking to make deals to generate income.
In fact, companies that produce those kinds of assets are realizing they’re waaaay overstocked.
Now, you might be thinking, “Why are they telling me all this?” and the reason is simple: If you have the liquidity, this next few months could be a real windfall for your investments in the right things. I’ll go out on a limb and say it – anything you’ll pay interest on is going to be cheaper to buy and far cheaper in the long run.
…and that might also mean simply refinancing some existing loans you have out there, too.
We’re still a long way from getting back to whatever the new normal will be, but as we begin to reopen this economy, I want you to be aware of how you might be able to save a lot of money – or make it – in this next quarter.
As always, though, my team and I are here for you when you need advice!