In this video, we break down why recessions don't destroy wealth, they transfer it, and 3 of the 7 institutional strategies the wealthy use to buy while everyone else is forced to sell.
They never panic sell, instead following a written investment policy statement that tells them exactly when to buy, hold, or rebalance. They build a liquid capital moat, keeping 12 to 18 months of living expenses in liquid, income-producing assets instead of a standard 3-month emergency fund. And they use core and satellite investing, keeping 80% of their wealth in stable assets like index funds and real estate, with only 20% in high-risk investments.
These are 3 of the 7 institutional strategies covered in this series. The other 4 recession frameworks are covered in the full video.
This is Part 14 of The Money Formula's Millionaire Behaviors series — subscribe for daily videos on money mindset, wealth building, and financial freedom.
This content is for educational purposes only and is not financial or investment advice.