Tag: Economy News

How Can the Average American Pivot in a Recession?

Recession 2023
Want to become recession proof? Here are some steps you can take.

An economic downturn, a recession, call it what you will.

The U.S. economy is in a state of emergency and the average American is suffering financially.

From stock and crypto market crashes to the rise of gas prices and increased inflation, the middle class is in desperate need of help.

The problem is no one is teaching the middle class how to pivot.

Cutting back on expenses isn’t going to do it, you can only cut so much.

This article is going to help you identify several ways to pivot during a recession so that you can take care of your family during economic hard times.

Let’s get started.

Shifting Mindset from Defense to Offense

how to prepare for a recession.
How to prepare for a recession.

During a recession, most people tend to contract, they tend to shrink (cut expenses, coupon, etc.).

Very few, however, expand and look for high reward opportunities.

It’s these opportunities that allows the few to shift their mindsets from defense mode to offense mode.

A defense mindset is idle, waiting for the government to do something about their financial setbacks (job loss, cut hours, lost pension funds, market crashes, etc.).

An offense mindset on the other hand is identifying how to keep up and overcome the changes occurring in their environment.

While most people focus on the things that are out of their control, few focus on the things that are within their control.

If you’re reading this blog, chances are you’re being impacted by our economy today and want to make more money.

Who doesn’t want to make more money?

Money is how we ensure our family’s security and wellbeing in America.

If you want to learn how you can pivot in today’s falling economy by earning more money, keep reading below.

Learn How to Use Leverage and You’ll Never Fall Short Again

how to use leverage
How to prepare for a recession.

We all have the same 24hrs in a day, but do you want to know why successful people make more money than the average person?

It’s not because they work harder than you or because they’re smarter than you.

It’s because they use leverage.

Leverage is a multiplier of both time and money.

What would have taken you decades to accomplish, leverage gets it done at a fraction of the time.

Leverage is accessible to everyone, including you.

But we don’t grow up with mom and dad teaching us this.

So, what are some forms of leverage you can take advantage of as soon as you exit this blog article?

Let’s dive right into them.

Leverage Tools to Help You Make Big Money

#1. Building Your Dream Business

Small business recession
@easymarketingconcepts

Starting a business around your hobby, passion, or skills has the potential to create that world you desire.

How does leverage play a role in building a business?

Think about this for one second.

If you work a 9-5 or commission job, you the employee are generating income for the leader of that organization and getting paid per hour or per sale to do so.

However, if you’re the business owner of a small business or startup, all revenue goes to your business account.

The leverage here is you’re now using your time to build something that will generate positive cashflow instead of giving it away for an hourly wage or commission.

If you don’t have the capital to start a new business, you can always use leverage by taking out a business loan and incrementally paying it back as your business picks up.

Using the banks money to make money is the proper way to leverage someone else’s capital to your advantage.

#2. Day Trading

how to make money during a recession

If you’re already invested in the stock market, then you’ve more than likely heard of day trading.

Day trading uses one of the biggest leveraging tools out there, the stock market/derivatives market.

Here, traders will require intense discipline in order to execute their trades with profit.

Day trading is certainly not for everyone, but if making hundreds of dollars to thousands of dollars per day sounds appealing, you can learn more about it here.

The incredible thing about trading the market is that traders can learn how to make money whether the stock market is booming or crashing.

This means that as long as you’re able to develop the skills necessary to become a consistently profitable trader, you will be able to pivot in a recession and actually make money while most of the economy faces turmoil.

Going on the offense means learning new skills and getting out of your comfort zone to be successful at something outside your 9-5.

franknez day trading

You can follow my personal trading journey on Instagram or Twitter.

#3. Monetizing a Platform

How to prepare for a recession.

Americans are monetizing on Facebook, TikTok, Instagram, YouTube and other platforms such as blogs and podcasts.

If the idea of creating content at scale intrigues you, monetizing a platform could be a great leverage tool for you.

The bigger you grow your audience, the more income you may earn from advertising revenue, affiliate marketing, sponsored content, or other streams.

But the key here is to provide real world value that can help your audience in one form or another.

My blog for example has helped thousands of people invest in the stock and crypto markets for the first time.

Retail investors were able to profit big from investments such as Bitcoin, Shiba Inu Coin, Terra Classic, AMC, and HYMC from early ticker updates on Franknez.com.

Those who took advantage of the information came out profitable before the markets began to tank.

But not everything has to be educational – many creators are publishing content on pretty much any niche that people find interest in.

A platform will help you pivot in a recession by working 24/7 for you.

How to Prepare Personal Finances for a Recession?

In terms of your personal finances, you’ll want to allocate a good chunk of your income into a savings cash account you can build in case of an emergency.

If your income is booming during a recession, consider investing in the S&P 500 index or in rental property.

Many opportunities will present themselves in times of an economic downturn, and when they do, we better be ready.

Becoming Recession-Proof

recession proof
How to prepare for a recession.

Becoming recession-proof is really about taking action.

It’s about creating something or developing new skills that will allow you to overcome any hardships that come your way during economic adversity.

Living paycheck to paycheck is hard, learning new skills is hard, building something new and getting out of our comfort zone is hard, so choose your hard.

You Can Follow Me On: Twitter | Facebook | Instagram

Read: Stocks Retail Investors Can Buy to Build Wealth This Decade

Citadel Faces Potential Default on Russian Tech Company

Citadel Default on Russian bonds
Market News: Citadel faces potential default on Russian bonds

Citadel is facing potential default on convertible bonds from Russia’s Yandex NV.

Yandex NV is an internet and technology company that provides an internet search engine in Russia and other international markets.

Tigran Khudaverdyan has stepped down from his roles as Executive Director and Deputy CEO at Yandex.

Citadel could default on convertible bonds worth billions.

Here’s how Russia is affecting the hedge fund.

franknez.com

Welcome to Franknez.com – if you haven’t already joined the newsletter be sure to do that below. I’m publishing daily market news to keep you informed.

Let’s dive right into it!

Join the newsletter to become part of an activist group fighting for market transparency!

Receive weekly market news to stay up to date.

(Bloomberg) Tech company suspension could lead to Citadel default in Russian bonds

Yandex Russian Bonds

The Russian tech company’s U.S. shares have been suspended for more than five days, enabling bondholders to ask for repayment in full. 

Citadel just happens to be one of those bondholders who wants their money back.

The firm said it does not have the money to redeem the $1.25 billion bonds, which are meant to be exchangeable for common stock.

Yandex is one of few Russian companies with convertible bonds issued from foreign financial institutions.

And because restrictions complicate the transfer of money out of Russia, access to capital markets to raise funds any time soon seems highly unlikely.

This significantly increases the odds of Citadel having to default on their Russian bonds.

If Citadel defaults on these bonds, the hedge fund would have accrued additional losses its first quarter of 2022.

Representatives from Citadel declined to comment on the matter, according to Bloomberg.

JP Morgan Chase & Co. turns down advisory role

JP Morgan turns down advisory role
Citadel and bondholders seek advisory – JP Morgan declines

Bondholders have the right to ask to be repaid in full if the company’s shares stop trading for over five days.

However, Yandex only has $615 million in cash with only 60% of that money located outside of Russia.

This means Yandex only has approximately $369 million in liquidity.

That’s a massive difference from the $1.25 billion they owe to Citadel and other institutions affected.

Because sanctions are preventing money from leaving Russia, it’s impossible Citadel will obtain cash from the country.

Bondholders are struggling to find advisors to navigate the process.

JPMorgan Chase & Co. turned down an advisory role on the situation after participating in initial discussions.

The bank simply does not want to get involved.

Will Citadel default on these bonds?

The chances are very likely.

Margin call tension rises

Credit Suisse has been margin calling clients exposed to Russia.

In the coal industry, Peabody received a $534 million margin call.

We’ve recently seen Citadel pull back $2 billion from Gabe Plotkin’s Melvin Capital as they too have been experiencing losses.

Even as Citadel faces default on Russian bonds, the hedge fund has sent signals of distress in the past few months.

Events include from receiving a $1.2 billion lifeline from Paradigm and Sequoia to restricting customers from cashing out.

The Russia-Ukraine conflict is creating losses even for short sellers during a time they would usually profit.

It seems it’s only a matter of time before hedge funds start receiving margin calls too.

But will big banks be able to bail everyone out?

What do you think?

Leave a comment below.

Be sure to join the newsletter to be notified with updates and new market news.

You can follow me on: Twitter | Facebook | YouTube | LinkedIn

Read: Ukraine: These famous brands have pulled out from Russia


Citadel And Virtu Are Creating Massive Systemic Risk

Citadel and Virtue Systemic Risk

The system almost failed earlier this year due to the systemic risks in the hands of the two biggest market makers.

Citadel and Virtu CEO’s Ken Griffin and Douglas Cifu continue to argue that retail investors have never had it better.

Although the SEC has been observing for quite some time, they are finally looking into both of their business models.

But is that enough?

What can be done in order to avoid the collapse of an entire system?

The SEC has taken a stance against high frequency trading and is currently supporting the D-Limit order from IEX.

It’s time for retail investors to speak up and let our government leaders know our needs in the market.

Franknez.com

Welcome to Franknez.com – the blog that fights for retail investors and for a fair market. Today’s topic is extremely important so let’s dive right into it.

Let’s get started!

System of Checks and Balances

checks and balances

In the United States, the system of checks and balances provides each branch of government with individual powers to check the other branches and prevent one branch from becoming too powerful.

However, there seems to be a massive concentration of power between market makers Citadel and Virtu in the finance world.

These two market makers are responsible for processing majority of retail investor orders.

This creates massive systemic risks since there is so much power concentrated just within these two key players.

Should one or both fail, the entire system could collapse.

This almost happened in January during the ‘meme stock’ rallies.

Citadel claims they were the only market maker processing orders from Robinhood and this is a big problem.

There needs to be a separation of power.

It’s extremely important that retail investors voice their needs from government leaders regarding this matter.

PFOF Takes More Than It Gives

Citadel, Virtu, and Robinhood continue to stand by payment for order flow.

The issue with PFOF is that it takes more than it actually gives.

Market makers argue that it saves retail investors billions of dollars annually but fail to mention that they also make money from retail through high frequency trading.

In this documentary you will find Citadel makes their money shorting stock.

The Story of Citadel

Retail investors don’t want their orders processed by a company that is a market maker, hedge fund, and dark pool all at the same time.

Not only is Citadel profiting from retail money through high frequency trading, but they are also shorting the stock retail investors are buying through various means.

Dark pool trading and naked short selling are some other ways we’ve seen hedge funds suppress the rise of a stocks share price.

More so in ‘meme stocks’ such as GameStop and AMC, which are heavily shorted.

But there’s another issue that has yet to be addressed and that is OTC, or what’s also known as off-exchange trading.

The Rise of Off-Exchange Trading

Recession

Over-the-counter (OTC), or off-exchange trading is when trading occurs between two parties instead of through an exchange, such as the NYSE (New York Stock Exchange).

Market makers essentially negotiate with one another through dealer quotation services such as FINRA’s OTC Bulletin Board.

Yes, that is the same FINRA that is supposed to be protecting retail investors and safeguarding market integrity.

Off exchange trading is not as regulated as the NYSE nor does it require prices to be publicly disclosed.

Market makers can short a stock in these off exchange trading platforms and also create a ‘perfect hedge’, allowing them to offset or eliminate all risk on their position(s).

Retail investors go long on stocks.

So when market makers such as Citadel and Virtu are using tools to make money from shorting stocks, retail investors are at a massive disadvantage.

Market Makers Are A Threat To Our Economy

Market makers pose a serious risk to our economy and the businesses that provide massive value to our society.

As long as this concentration of power isn’t broken, the United States economy will always face systemic risk.

And when the entire country is economically on its knees, financial institutions who shorted on the way down will be the only ones compensated for it.

This is when integrity is buried by greed.

So what’s going to be done about it?

Our community now has a voice.

We must continue to fight against market corruption, and we must fight for a fair market.

Only then will we be able to mitigate systemic risk and make a positive impact in our economy.

Retail Investors Can Grow Our Economy

retail investors can grow our economy

With more people now learning about the markets more than ever, this could greatly benefit our economy.

Not only does the average person get to invest in the stock market, but we get to support the ideas and innovations of the companies in our country.

People don’t need to make a lot of money to invest.

But fair investing could improve the quality of life for millions of people.

The average person could provide more for their family, the government would collect capital gain taxes, and our businesses would excel much more rapidly.

Our government must look at solutions for economic prosperity and growth.

Market makers such as Citadel and Virtu suppress economic growth for their selfish gain.

They do not contribute to society.

This is why we’re seeing a power like China catch up to the United States with such an intense and exponential growth.

They’ve eliminated a lot of the issues in their markets that we have in ours today.

Institutional investors play a dominant role in the U.S markets, while Chinese markets are dominated by retail investors.

This, ladies and gentlemen is why there are now more wealthier Chinese than there are Americans.

Our government must look at market structure and identify what is going to spur growth in our nation.

Leave A Comment Below

I’d love to hear your thoughts in the comment section below. What does our government need to do to mitigate systemic risk?

Do you believe retail investors and make a greater and more positive impact than market makers can?

Share your thoughts below.

Also, consider subscribing to the blog for more market news, stock, and crypto articles.

franknez.com

Twitter | Facebook | Instagram | YouTube | Discord access + exclusive FrankNez content 🎉

Read: Stock & Crypto News


Yellen: “America Could Default For The First Time In History”

Yellen "America Could Default For The First Time In History"
Yellen “Economic Catastrophe”

News arose today regarding congress raising America’s debt limit to keep the U.S government on. Treasury Secretary Janet Yellen expresses her deepest concerns regarding our economy.

Yellen is currently blowing up on Twitter feeds as she’s stated, “there are issues relating to hedge funds and the possibility of leverage, they can trigger financial runs”..

A financial run is a consecutive run in the markets, whether bullish or bearish. In the case of a hedge fund, it’s usually bearish due to short selling or short-laddering.

Franknez.com Yellen

Welcome to Franknez.com – today’s finance news will uncover some rather jarring information in regards to our economy. Yellen has warned House Speaker Nancy Pelosi on the matters.

Let’s get started!

Failing To Act Could Spark An Economic Catastrophe

Yet again our government is forced raise America’s debt ceiling or face devastating consequences.

Raising the debt ceiling essentially provides America with a larger line of credit. Yellen’s solution is for America to continue mounting debt, as the treasuries extraordinary measures to print more money could have very well been exhausted.

Although, if congress does not raise the debt ceiling, the treasury would have to step in to keep the federal government running.

Inflation continues to skyrocket with the printing of money. And the only two solutions America has is to either keep digging a debt hole, or exhaust the worth of our dollar.

The lack of financial literacy in our own government is what will ruin our financial system.

How Did We Get Here?

If you ask Robert Kiyosaki, he will say the lack of financial education got America here. And I agree. Robert Kiyosaki, author of Rich Dad, Poor Dad is a strong advocate for financial literacy.

In this incredible interview with Patrick Bet-David, Robert talks to us about his thoughts on the U.S national debt.

Robert Kiyosaki on The U.S national debt

If you follow Robert on Twitter, you know his tweets are very strong when it comes to the Feds, our government, and the destruction of our financial systems.

The U.S Will Run Out of Cash By October 18th

Congress has up until Monday, October 18th to raise the national debt before they run out of cash.

“It is imperative that Congress swiftly addresses the debt limit,” Yellen said yesterday in testimony before the U.S. Senate Banking Committee. “If it does not, America would default for the first time in history. The full faith and credit of the United States would be impaired, and our country would likely face a financial crisis and economic recession.”

What Would Happen If America Goes On Default?

If America goes on default, it would trigger a broad market sell-off and put a hold on everything from government payments to the ability to borrow.

Unemployment, child tax, and social security would all stop flowing to the American people. Not to mention, our troops would stop getting paid.

And although social security is a self-funded program, the money is drawn from various trust funds to pay benefits.

Stocks and crypto would tank which would present a buying opportunity for investors. Investors usually profit from these market crashes as they begin to correct themselves. As for hedge funds, closing short positions could result in the MOASS retail investors have been waiting for.

A default would only be temporary, but could hurt Americans who depend on assistance from the government.

The interest rates on credit cards, car loans, and mortgages would also skyrocket, making it almost nearly impossible for struggling families to keep up with occurring debt.

Let’s Talk Solutions For An Economic Downturn

How can we prepare ourselves for an economic downturn? This is not financial advice, but advice from a friend.

If you have money in stocks and crypto, know that with a stock market crash the value of your assets will go down. However, if you take this opportunity to increase your position then you will come out profiting during its correction.

Negative beta stocks such as AMC and GME are more resilient and less volatile when it comes to crashes.

Be sure to have an emergency fund set aside in case you see yourself needing cash short-term. While most of our holdings are in assets, it would be wise to keep cash at hand to prevent from liquidating certain stocks or crypto.

If you have a safe stream(s) of income, make sure you’re stacking. That way when turmoil hits, you’ll be ready to take advantage of the investing opportunities presented to you.

franknez.com

Twitter | Facebook | Instagram – You can support the blog on Patreon (250 Members Challenge!) 🎉

Read More: Stock & Crypto News / Finance News


© 2022 Franknez.com

Theme by Anders NorenUp ↑

%d bloggers like this: