Wealth Management

How the Wealthy Multiply Their Fortunes During Recessions (And How You Can Too)!

24 Feb ’25

I’ve studied the past five major boom and bust cycles over the last few decades in detail. Each time, I’ve seen the same very predictable pattern play out:

Most people panic and lose, while the wealthy quietly multiply their fortunes.

Why? Because the wealthy understand one crucial truth: Recessions aren’t random. They follow a predictable cycle.

And if you can anticipate that cycle, you can position yourself to profit—just like the millionaires do.

The Fed’s Playbook: A Wealth Builder’s Secret Weapon

Every time the economy crashes, the Federal Reserve follows the same playbook:

  1. Slash interest rates — making borrowing dirt cheap.
  2. Print money — flooding the economy with liquidity.

This strategy, known as Quantitative Easing (QE), is why asset prices—stocks, real estate, and Bitcoin—tend to skyrocket after a market crash.

This isn’t theory. It’s history.

2008 Financial Crisis: A Masterclass in Wealth Creation

In 2008, the world was on the brink:

  • Banks were collapsing.
  • Real estate values were cut in half.
  • The entire financial system was in chaos.

Then the Fed stepped in:

  • Interest rates were slashed from 5.25% to virtually zero.
  • They printed money like never before, expanding their balance sheet from $900 billion to $4.5 trillion.

 

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The masses were caught off guard. They lost heavily in real estate because they were over-leveraged.

But people who understood market cycles, people like Robert Kiyosaki (author of Rich Dad Poor Dad), did the opposite:

  • He waited for the Fed to launch QE.
  • Then he bought distressed properties at 70% discounts.
  • He borrowed and used the Fed’s cheap money to finance his purchases.
  • He accumulated hundreds of rental units while everyone else was selling in panic.

The result?

While others were licking their wounds, he was building an empire.

He understood the cycle: The Fed’s money printing would eventually drive up all asset prices. He played the game smarter.

2020 Pandemic: History Repeats Itself

Fast forward to 2020.

The pandemic hit, and the economy collapsed almost overnight. This time, the Fed didn’t wait around:

  • They dropped rates to zero within weeks.
  • They printed trillions at record speed.
  • They flooded the system with liquidity.

Look at the below chart which shows the total money in circulation (M2). After 2020 it skyrocketed.

 

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And just like in 2008…

  • Asset prices exploded.
  • Stocks, real estate, and Bitcoin went through the roof.

But here’s the kicker…

It wasn’t because of a strong economy. It was artificial liquidity—cheap money flooding the system.

Cheap money = Rising asset prices.

The Next Big Opportunity: Position Yourself Now

Look out for the next recession warning signs to start flashing:

  • Rising unemployment.
  • Increasing bankruptcies.
  • Slowing GDP growth.

When this happens, people will start to panic, but the millionaires won’t be worried. They’ll quietly be preparing for the next wealth-building cycle.

Why?

Because they already know the Fed’s next play:

  • Rate cuts.
  • QE.

Translation: The money printer will run again.

And when it does, asset prices will explode—again.

How the Wealthy Will Play This (And How You Can Too)

  1. Buy Real Assets, Not Paper Money
    The Fed’s money printing devalues cash. Real assets—like real estate, stocks and Bitcoin—retain value because they can’t be printed.

The wealthy accumulate these while they’re cheap. Whilst everyone else is in panic mode and selling!

If you wait until the market explodes, you’ll have missed the boat.

  1. Focus on Time in the Market, Not Timing the Market
    The biggest mistake I see people make is trying to time the market perfectly.

Millionaires don’t do that. They think in decades, not days.

They use Dollar-Cost Averaging—investing consistently over time, regardless of short-term volatility.

They know that the Fed’s actions will drive prices higher in the long run.

  1. Use the Fed’s Own Money Against Them
    When the Fed prints money, it creates inflation.

Inflation devalues debt. You borrow today’s dollars and pay back with cheaper future dollars.

The wealthy use this to their advantage:

  • They lock in long-term, fixed-rate debt to buy income-generating assets.
  • Inflation eats away at the debt while the assets appreciate and generate rising income.

Remember: Inflation transfers wealth from lenders to borrowers.
Position yourself on the right side of that transfer.

You Have a Choice to Make

You can either:

  • Watch from the sidelines as the wealth gap widens.
  • Or you can act—just like the millionaires do.

Position yourself now by:

  • Investing in real assets, stocks, shares and Bitcoin.
  • Hedge against inflation.
  • Anticipating the Fed’s next move.

If you don’t, someone else will.

Ready to Play the Game like the Millionaires Do?

 I’ve helped hundreds of clients build investment portfolios using these exact strategies.

I can help you do the same.

Book a complimentary consultation today and let’s get you positioned for the next big wealth transfer.

The millionaires are getting ready… Are you?

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