Cash is KING

Algoinsights Blog, Cash is King, Forex trading, Recession, Wealth

As I write this blog article, the whole world is going into recession. This is something I have been sharing with my clients over the last 3 years but only a few would listen.

Now, recession is on the horizon and maybe you are already feeling the pinch. What can you do? What will you do?

If you have spent the number of years like I do on planet earth, you will come to the realization that recession is nothing new at all.

Hope I did not depress your enthusiasm if this is your first encounter with recession in your life.

However, what I find interesting is that most people don’t learn from past recessions and this is the single most important reason they keep getting into trouble with recession.

They start to worry when they hear news of downsizing, retrenchment, and restructuring in their industry.

Then, their blood pressure shoots up when they hear their employer is going to downsize the workforce. They hope and pray they will not be called into the Human Resources Department for an “extraordinary” meeting.

Finally, they panicked when they received a letter from the Human Resource Department marked “Private and Confidential” that says “We thank you for your service over the last few years. We really appreciated what you have done for the company……… Blah…. Blah…. Blah. Unfortunately, ……

Suddenly, you realized you are out of a job. Out of a regular monthly income. And with monthly bills to pay at home. Your screamed, “how could they do this to me?

I ask you, “when will you ever learn?”

All Crises are Man-made

Yes. This has been my belief since I started my career some 25 years ago. Till today, it is still proven to be true.

Property crisis. Stock market crisis. Economic crisis.

Why is this so?

To stimulate economic demand, we have super low interest property loans. We allow any individuals to trade stocks on margins. We encourage mindless credit card spending “to keep up with the Joneses.” 

Remember this, the Joneses are the poor lot. I see no point in “keeping up with them.”

Simply, we are plain greedy for more and more of everything. We want the instant gratification of owning that sport car, and that beautiful big house to impress our neighbors, and in-laws that we “have arrived.”

We want to dine in high places just to be seen by people. Never mind the food. Just the attention will do. We are here to feed our egos and not our stomach anyway.

Because of this greed, our behavior becomes very predictable and cyclical. Haven’t you noticed the financial cycle of Boom and Bust?

A boom will always be followed by a bust and vice versa. Like clockwork. It never fails.

If you will notice, all economic demands are fueled by debt. This is because we have been taught that creative use of debt brings you prosperity. This is just a myth in my opinion. I believe debt has caused more crises than prosperity in the lives of most people.

In every crisis, there is only a few winners and most of them are just plain losers. History has proven this truth repeatedly.

Wealth change hands

In all recessions, my mentor used to tell me, “wealth change hands.”

I agree with this statement totally.

Having been through 3 economic crises myself, I have seen that statement in action. Those 3 experiences have built my belief in it even stronger.

How could this be?

In any crisis, debt-laden people are the hardest hit. Period.

Therefore, if you are debt-laden with property loans, or business loans, you are at the highest risk of being sued for personal bankruptcy or having your property or business foreclosed by your lenders who lent you the money in the first place.

It is a fact that the sale prices of foreclosed properties and businesses fetch below the market price especially in times of economic crisis.

This is where people with real hard cash will step in and buy up those properties and business assets at “discounted” prices. They would call their purchases a “steal” and they are 100% right.

This is how they make money at the point of purchase. Wealth have just changed hands.

What is the DIFF?

 So, what is the difference between you and them?

CASH is my first answer.

PATIENCE is my second answer.

You buy with debt, they buy with cash.

You buy when the price is high, they buy at the lowest possible price.

You want instant gratification and have no patience to wait, they wait till the time is right.

As I always say, “you don’t need to be a rocket scientist to be wealthy.” All you need is just some minor mindset adjustments and you are on your way there.

So, what is your next step?

Accumulate CASH

Focus your mind on creating multiple streams of passive income while you are getting an active work income now. Your focus must be that of an obsession. You must really want it and NOT just to talk about it. You need to dig your well before you’re thirsty.

This is where I am most happy for clients of ALGOINSIGHTS PTE LTD who have established themselves multiple streams of Forex trading income with our fully automatic proprietary trading algorithms.

I hope with this article, readers will start to create multiple streams of passive income now and not be a victim of the next recession or economic crisis.

Remember, CASH IS KING.

Victory to all.

Victor Ang

CEO & Founder, ALGOINSIGHTS PTE LTD