 So, what if I told you tomorrow morning you're going to wake up and the stock market is going to be down 50% from where you bought in? Let's say tomorrow you wake up and your account, your portfolio is down 50%, 60% and you start to see all of this red, your stocks are down, you start to panic. What are you going to do in that particular time period? All of your hard-earned money, the money that you've been busting your butt at your job for saving up, at your business through side projects, through side hustles, you know, all of that money that you invested in the stock market is down 50%, 60%. What are you going to do? You guys saw in the title of today's video, I am ready to lose 50% on my principal, on my account value in the stock market. And this is actually the unfortunate reality for many people that we're investing in the stock markets in the early 2000s and towards the 2007-2008 period, which is also known as the Great Recession. So, in today's video, we're going to be talking about my mindset heading into the next recession. Like you guys saw, I'm ready to lose 50% of my money. We're also going to be breaking down some individual stocks performance throughout the last recession. We're also going to be looking at some indexes, the S&P, the Dow, and the NASDAQ, taking a look at how they did performance-wise, percentage-wise in terms of the last recession and how much they rebounded from the bottom that they saw the indexes throughout the recession from 07 to 09, also known again as the Great Recession. So, if you guys enjoy this video, go down below, hit that like button. It really supports me and supports the channel in general, and consider subscribing to the channel if you do enjoy the content here, and also hit that notification bell so you're notified every single time that I do make a video. So, it's no news here. It's not a surprise that we are heading towards the end of an economic cycle right now, guys. The bull market has been running now for about 10, 11 years, and we have a recession on average every five to 10 years. So, we're getting towards the end of this cycle. I'm not calling the recession this month, next year, in six months. I'm not going to be that guy, but I will be that guy that's preparing as the recession starts to creep up, because we all know that it's going to happen, but no one knows when it is going to happen. And it's always a good idea to be prepared by having cash set on the side, knowing what you're going to do and having that plan in place. So, let's take a look here at the S&P 500. We'll see how much it rebounded, how much it fell in the year of 2007 through 2008. And you guys can see the previous recession in 2000, how it did as well. So, the market here dropped to a low of $666, all the way down to about $666.79 from a peak of about $1,550. And you guys can see that is over a 50% drop. So, the people that were buying at the peak of the markets here, they were down 50% to 60% on their money if they were investing in the index. And let's say in some individual stocks cases, they were down maybe 70%, 80% and some of these stocks that got hit the hardest. And you guys can see back in the 2000 recession, we were at the same price roughly at about $1,550 and we sold off all the way down to $800. So, the unfortunate reality here guys is if you were to invest in the S&P 500 at the peak in 2000 at about $1,500, you would not have made a single dime in profit until 10 years down the line as the second recession recovered and the bull market started to hit. Because think about it, you invested here, we sold off, we rebounded, but we didn't even get past the previous spot on the S&P 500 that we were at 7, 8 years prior in terms of this peak here. And we dumped, we lost about half of our value and this is the kicker here guys. If you were to panic out of the S&P 500, if you were to panic sell, let's say at like $7,800, you know, you were in the index, you would have missed out on forexing your money because you guys can see the S&P went all the way up to $3,000 nearly, which you know from $6,700, you know, do the math, do 600 times 4, what is that guys? That's about $2,400, so you would have forexed plus your money if you were to buy at the bottom and hold all the way till now, which kind of solidifies my long-term philosophy in the stock market guys and me viewing all of these recession dips as buying points for the long-term, just think about it, you know, if you had a long-term vision here, you know, although we were in a time period where the markets haven't been growing much, you know, over the past 10 years, this would still be a juicy opportunity to hop into some long-term plays, some businesses that have a good economic moat that are going to be here for years to come and you know, history proved itself after that as a lot of stocks did so well from this period guys, a lot of stocks did so, so well, so you guys see 50% drop followed by a 4x on the S&P 500 going over here to the NASDAQ guys, NASDAQ went from 2256 all the way down to about $1,1100 roughly, which is another 50% drop, 50% drop in the NQ and from there guys, it went literally from $1,000 all the way up to $8,000, nearly $8,000 for the NASDAQ and I don't know about you guys, but my math is telling me that that is nearly a 7 to 8%, not 8%, 7 to 8x return on the NASDAQ, so you know, initially, yeah, you're down 50%, you're down 50%, you may be panicking a bit, but if you have that long-term perspective, if you're like, okay, we're seeing this dip right now, you know, stocks are on sale, the amount of cash, the amount of value this business holds is way higher than what the stock price is, hence why the stock is undervalued, okay, maybe this is an opportunity to hop in for the long term and if you were that, you know, using that mindset back in this time period, you would have done a ridiculously good job, you know, on your returns and obviously the NASDAQ is a tech heavy index, tech stocks, you know, from this crash have rebounded ridiculously, just think of Apple, Amazon, Google, Facebook, these stocks have done so well, you know, Facebook actually wasn't around, but you know, the Google's, the Amazon's, the Facebook's or rather the Apple's, they have done so ridiculously well, you know, after the recession, it's not even cool, guys. So how I'm viewing this, guys, is short term, yeah, a recession, it's going to tank the stock market, stocks could be down 30%, 40%, 50%, but long term, that is the beautiful buying opportunities that open up so many doors for building wealth long term, and that's kind of how I'm viewing things, guys, you know, short term, yeah, there's going to be a lot of pain, markets are going to be down, but if you have that long term vision, a lot of these value companies, they're going to be at such discounts, it's not even, it's going to be ridiculous, right, they're going to be at discounts where if you buy in at these dips, the wealth you're going to build through compounding, especially in some of these dividend stocks where the starting yield is going to be a lot higher when the stock is going down and compounding that yield over time, you know, continuously buying more shares, reinvesting, the wealth you're going to build long term is going to be unbelievable, right, which is why I love when the markets drop, I love it, I absolutely love getting in at cheaper valuations, at cheaper prices to build wealth for the long term, so taking a look at the Dow Jones performance, here you guys can see it went from 13,000, 14,000, all the way down to about $65,000 to about $7,000, so that was another 50% drop and from there we rebounded from $6,500 all the way up to about $27,000, which is roughly a 3-4X in the Dow Jones as well, so that's another prime example, markets drop 50%, you know, are you willing to withstand a 50% drop to get a 400% return over the next 10 years? Me personally, I am willing to do that, so you guys can see, you know, the major markets, they got hit pretty hard, but they rebounded very nicely, building a ton of wealth for people in America and across the world and this is kind of how I'm viewing the next recession, guys, you know, if we drop, let's say from $26,000 on the Dow, maybe down to about, you know, $15,000, $16,000 again, maybe $18,000, you know, if we drop from the NASDAQ, you know, upwards of $7,800 here, if we drop down to, let's say, you know, $4,000, $4,500, if the S&P goes from $2950, if it gets back to like, you know, $2,000 flat or like $1,800 or whatever it may be, I'm viewing these as very, very good dip buys to buy individual stocks and ETFs for the long term, guys. There's a bunch of different things that are going through my head, you know, that would be going through my head when the market crashes, right? I'll be looking at some small cap, you know, value stocks and ETFs, small cap growth because for those of you all that don't know, during a recession, during a crash, typically the dividend aristocrats, they don't get hit the hardest, but what does get hit the hardest are the small cap stocks and what rebounds the hardest after the recession is the small cap stocks. So, I will be, you know, investing in some small cap stock funds, small cap ETFs because I am a younger guy, I'm willing to take on more risk and my horizon in the stock market is much longer than some of these other, you know, older people's horizons might be. So, I'm willing to invest in some smaller cap ETFs for that growth potential after the rebound, you know, after the recession. So, very quickly now, now that we saw the overall markets, how much they dropped and how much they rebounded and kind of my thoughts and philosophies behind this, viewing this as a buying opportunity, you know, let's take a look at some individual stocks. We'll take a look at some value stocks and some growth stocks and see how they did after the recession. So, Apple, we love talking about Apple on this channel. Let's take a look. APL 2008 and went from $96. Actually, no, that's not 2008. This is 2008. It went from $28 per share all the way down to about $11 per share, guys. That is more than a 50% drop. That's like an 80, 70, 80% drop or like maybe like a 60, 70% drop in the stock's price. And you guys can tell the rest is history, right? From $12 all the way up to $233. I couldn't even tell you how many doubles that is. The stock has literally gone up like 20 times, 20X from that period. So, if you were able to withstand the initial 60% drop, well, you would have made long term if you had the vision on Apple, you would have made 2000%, right? Pretty, pretty amazing, right? So, Amazon AMZN, this was literally a stock that did amazing as well. Take a look at this. From $92 and an 07, it went all the way down to about $40 in 08. So, from $40, guys, all the way up to $2,000, what is the math on that? What is the math? $40 up to $2,000. Is that literally a 50X in Amazon stock? Yes, you heard me right. You would have been down 50, 60% in 08. If you held, you would have made 5,000% if my math is right, which is ridiculous, absolutely ridiculous. You know, Facebook wasn't around then like we already mentioned. Google, we can see Google went from 350 all the way down to about 130. That's another 50% drop and from 130 all the way up to 1300, which is roughly a 10X in Google stock over the span of 10 years. Think about that, guys. You're literally doubling every year pretty much if we're going 1,000% in 10 years. That's about 100% every single year. So, you guys can see how some of these tech stocks rallied. If we're going into some, I guess you can say more stable stocks, maybe starting out with Disney. You know, Disney went from 34 down to 16 and you guys can see how much it rebounded from there. If you want to see an even more stable, stable stock, you know, Coca-Cola, even Coca-Cola got hit in their recession, right? It went from 31 to about $20. You guys can see, it wasn't roughly, it wasn't really a 50% drop. It was more of like a 30% drop and from there, from $20 all the way to $52, you know, that was a nice little double and ensum since that point in time. You know, PG is another one. Procter and Gamble, that's a pretty safe stock from $72 down to about $46. You guys can see that is not a 50% drop. It was more of, you know, a 30-40% drop and you guys can notice, you know, over some of these more safe value stocks, they don't drop as much during a recession as some of these growth stocks like we saw, you know, Apple, Amazon, Google and, you know, those type of stocks, right? And of course, the small cap stocks get hit very hard as well. You guys can see Procter and Gamble went from $45 to about $111. What are some other ones? You know, Pepsi is a safer stock, I guess you can say, you know, from $77 all the way down to about $47, then all the way up to $134. And you may be asking yourself, you know, are there stocks that didn't go down in their recession? Yes, there are a couple that come off the top of my head. McDonald's being one of them, guys. This was a very good play in the previous recession. And literally, if we zoom in on these years, you know, it went from like $47 and it actually appreciated in value in 2009. It was up to about $65 per share. Chipotle Mexican Grill is another one that went up during their recession. And it went up a lot during their recession, guys. You guys can see, you know, it was at $73. It peaked at about $150, sold off to about $36. And then it started to ramp up all the way back to the hundreds, you know, after that dip to $36, which is really, really awesome. So those are just two stocks that I can personally think of that did quite well during their recession. And guys, I advise you to just take a look at a bunch of these stocks and see which stocks did well, which stocks did poorly, which stocks did very, very well. You know, these are all great things to know when we're investing close to the next recession, right? So the gist of this video, the whole basis of this video is to not be scared about investing during the recession and to be prepared to lose 50% or more of your portfolio, because that's what history is telling us has happened in the prior to recession. So in my opinion, dipping in the markets, 50% drops in the market, 50% dips, you know, these are buying opportunities for the long term. Because think about it, guys, the previous two times we've seen dips like this, it's made us generational wealth if you were to hold 10, 15 years, you know, after the dips, right? If you were to buy even after the 2008 dip, if you were to buy heavily and hold all the way up till now, just think about how much money you would have, right? And let's say we dip 50% now by the year of 2030, in my opinion, in 10 years from now, the markets will be even higher and we will regret not buying if we were to see a recession this year and the markets were cut 30, 40, 50%. We would definitely regret, in my opinion, not loading up and holding for the long term. So I hope you guys enjoyed this video. If you made it this far into the video, I'm currently in Mexico right now, which is why there is no Market Update video today, but expect a Market Update video for tomorrow on Wednesday. It should be coming out. And if you enjoyed this video, go down below, hit that like button and really supports me and supports the channel in general. Feel free to subscribe to the channel if you haven't done so already and you want to see further content from me as well as drop a comment. Let me know down below in the comment section, what do you guys think about this video, this topic? Are you ready to lose 50% of your money? I would love to know. So I'll see you all in tomorrow's video. Expect a couple of vlogs coming in Mexico, how to trade while traveling, stuff like that, showing you guys the resort, all that type of stuff. I'll see you all there. Have a great one. Peace out.