How can an ordinary person have millions of assets? In fact, all the wealthy people my brothers have met have one thing in common. Taking advantage of the situation. Times are trends City is momentum Platform is momentum Industry is the trend Cycle is momentum The first step is to wait for the emergence of cyclical global or regional financial or economic crises. Just like the human cold, crises occur periodically. The second step is to take advantage of the crisis to drive down the prices of high-quality assets, and at the same time, leverage the necessary measures of interest rate cuts and monetary easing to deal with the crisis, and buy these undervalued core high-quality assets through debt and leverage buying. Don't worry, asset prices are a monetary phenomenon. As long as the higher ups dare to release water, we don't have to worry about prices not rising in the future. The ancients said that when the water rises, the boat rises; currency is water, and asset prices are boats. The third step is to gradually emerge from the depression period and enter the prosperity period after the release of currency. At this time, sell the high-quality assets that were previously leveraged with debt to buy at a good price, reduce or eliminate debt, leave profits and some assets, work and live well, and wait for the next crisis. The fourth step is to repeat the above three steps N times and accumulate funds through hard work on a daily basis, which is the best way for ordinary people to have millions of assets. Of course, this process is very long and also tests your eyesight and operational ability. We need to know that the vast majority of people, after spending their entire lives, are unable to achieve assets worth millions. The above are the general steps, and below I will explain the details in detail. The first type of crisis (mainly internal factors) The precursor of an economic crisis is a financial crisis, and the essence of a financial crisis is a debt crisis. When a considerable number of individuals in an economy, due to the increasing scale of debt accumulation in the early stage, as well as insufficient profits and cash flow in the later stage, are unable to support the debt scale, and even cannot pay off the interest on the debt, large-scale defaults will occur. This large-scale default will bring about a decline in asset prices, such as the stock and real estate markets, and the decline in asset prices will lead to the contraction or even recession of the balance sheets of enterprises and residential sectors. And financial institutions, due to the decrease in borrowers, have experienced credit contraction, leading to a spiral contraction of "credit asset prices" in the whole society. The 2008 subprime mortgage crisis in the United States is a typical case. The second type of crisis (due to the combined effects of internal and external factors) Under the conditions of loose credit and rapid expansion of credit, when domestic asset prices continue to rise significantly and a clear foam appears, the credit scale suddenly shrinks, and the credit interest rate rises significantly in the short term. Some people or enterprises begin to sell assets due to debt pressure, mainly because the leverage ratio reaches the limit, leading to the decline of asset prices, which leads to the spiral contraction of the "credit asset price" mentioned above. At this time, if financial liberalization is implemented, foreign capital will withdraw in large numbers, and even foreign capital is short of domestic asset prices, which will exacerbate the spiral contraction of the "credit asset price" and form a continuous recession of the balance sheet. If at this time, the domestic population is becoming younger and urbanization is in a high-speed development stage, the economy can recover in a few years, such as in Southeast Asian countries during the 1997 Asian financial crisis. If, on the contrary, the population is aging and the economic growth rate enters a low growth stage, such as in Japan, it will continue for more than ten years, or even decades, and the economy will not be able to recover. Our country implements cross-border capital controls and has not achieved financial liberalization, so the worst outcome when we encounter a financial crisis is the first type of financial crisis mentioned earlier. How can ordinary people resist and even make money from financial crises? 1. Pay attention to external factors, the Federal Reserve raises interest rates. Historical summary shows that when the Federal Reserve raises interest rates to a high level, for a period of time, either the United States itself or other countries with high debt ratios and a single industrial structure will experience a debt crisis. At this time, the world will fall into a stage of overcapacity and insufficient demand, and asset prices, such as the stock and housing markets, will plummet significantly. So, as the Federal Reserve's interest rate hike is coming to an end and the federal funds rate enters the neutral interest rate stage, it is important to maintain stable personal cash flow and sufficient cash reserves. Do not make large-scale investments. If you are sensitive enough, you should sell off your high priced assets and reserve cash during the most aggressive interest rate hike stage of the Federal Reserve. 2. After waiting for the financial crisis to occur, After waiting for a significant drop in asset prices, we will wait patiently for signals of monetary, credit, and fiscal policy relaxation, and use our cash reserves to buy at the bottom of core assets. The collapse of the Bretton Woods system in 1971 and the pegging of the US dollar to oil in 1973 led human society into a credit currency system. The most fundamental logic of this system is the continuous issuance of currency and the use of debt to drive economic growth. Under the credit currency system, the rapid growth of debt leads to the inability of the economy and income to keep up, which is the fundamental reason for the cyclical outbreak of financial crises. Under the credit currency system, there is only one means for countries to deal with financial crises - quantitative easing and continuous money printing. So, during the stage of financial crisis, when asset prices fall sharply, it is an opportunity to buy at the bottom, because once quantitative easing operations are initiated in the future, asset prices will definitely rise, especially core asset prices, which rise first, longest, and most fiercely. 3. Continuous currency overproduction, The continuous debt driven economy will inevitably lead to wealth inequality. In a crisis, almost all asset prices have fallen, but there is a distinction between good and bad assets. Some assets are of high quality, but now their prices are falling, which is a mistake of reducing market risk appetite. On the other hand, some assets are already of poor quality and are like pigs in the wind of credit expansion and excessive currency issuance. Their intrinsic value is not high. So, in a crisis, if you want to buy low-priced assets, you must buy high-quality and core assets. Why will the prices of high-quality and core assets rise in the future? Because the wealthy are all grabbing these assets. Understand a truth: whether your assets will rise or not in the future depends on who you sell them to. If you sell to a wealthy person, the price will definitely increase. And after so many years of excessive currency issuance, the speed at which the rich make money and accumulate wealth, under the Matthew effect, is becoming stronger and stronger, which means that the purchasing power of the rich is becoming stronger and stronger. To continue making money, to continue making big money, is to constantly use cognition to find high-quality and core assets that were wrongly killed in the crisis, and that the rich will definitely like in the future. Then, after the currency is released to deal with the crisis, sell them to the rich at a good price.