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When the economy is very bad

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Since the end of the Great Recession in 2009, the U.S. economy has undergone a period of rapid growth, almost non-stop. Today, the recovery is still going strong, with U.S. jobs numbers showing signs of improvement on Wednesday morning. And while it might seem like new opportunities have magically appeared overnight, there’s often a dark side to these blessings as well as a darker cloud looming over the horizon. When the economy is in bad shape, it can mean that people are less able to make ends meet and more prone to poverty. This is particularly true for low-income Americans who typically lack access to reliable jobs or who struggle to save for their future. Fortunately, there are a number of ways you can take action when the economy is really struggling and help fight against unemployment and inflation through smart financial planning and other measures that work for you personally and professionally.

When the economy is really bad

The U.S. economy has been in freefall since the beginning of the Great Recession. As a result, many businesses have closed or been forced to shutter their doors. If you’re one of these small businesses, you may be able to save a portion of your income by taking advantage of the tax breaks and deductions that big corporations and the wealthy use to gain an advantage over their competitors. For instance, if you own a chain of coffee shops or sell online, you can lower your taxable income by taking advantage of the lower federal income tax rate on coffee sales. And if you operate a medical facility and specialize in heart disease or cancer care, you can claim a lower Medicare care reimbursement rate than if you conduct medical research at a loss.

Set boundaries

If you want to avoid becoming a statistic, it’s critical that you set boundaries early. Start by saying no to everything that comes to mind when you think of the economy. No shopping, no skiing, no hiking, and so on. Limit your negative self-talk so that you don’t spend unnecessary time thinking negatively about others or yourself. “It’s not my problem, it’s yours,” you might say to yourself. Set boundaries so that you can focus on what’s working and what’s not working for your situation.

Make use of your tax dollars

If you have the means to do so, get involved with your local community or choose to operate a business located in a state with a target income tax rate lower than your state’s. This way, you won’t have to pay income taxes on the amount that would otherwise be held in your account. It can also be an excellent way to avoid paying income taxes on capital gains or foreign profits that you’ve made outside the U.S. or that you have income that can’t be used as a returns. Deducting your income taxes can be a great way to avoid having to pay significant amounts of taxes in the future. If you have the means to do so, get involved with your local community or choose to operate a business located in a state with a target income tax rate lower than your state’s. This way, you won’t have to pay income taxes on the amount that would otherwise be held in your account. It can also be an excellent way to avoid paying income taxes on capital gains or foreign profits that you’ve made outside the U.S. or that you have income that can’t be used as a returns.

Learn how to manage risk

As you begin to take control of your financial future, you’ll start to understand the various risks and rewards that come with managing your investments and money management products. When you have a plan for how and when you’re going to use your money, you’re better positioned to take a risk that could pay off in the long run. As a simple example, if you manage your money wisely, you might end up investing in a high-quality resource extraction company that can provide a long-term benefit to your community and country. When you start taking full responsibility for your own money management, you’re more likely to invest in high-quality resources that will provide a long-term benefit to your community and country.

Don’t put too much on crypto

Yes, you heard it. Crypto is speculative and do not put more than you afford to loss. When the economy is bad, crypto investment is a gamble. You want to make sure you have enough left for emergency spending rather than gambling!

Bottom line

The American economy is doing pretty well these days – perhaps even well enough to sustain the U.S. as the leading world economy for the next decade or more. If the economy continues to perform as well as it is right now, then we’re in good shape. However, when the economy isn’t doing well, then there’s always the shadow of a darker cloud that can cast a shadow of uncertainty over the future of millions of Americans. The best way to combat this is to set boundaries early and use your tax dollars to benefit your community and your state. Then, when the economy starts to tank, you can take action to keep your income tax rate as low as possible, and you can also take advantage of government tax breaks that lower your overall tax bill. With hard work and a little luck, you can achieve great things when the economy is in good shape.

**Not financial advisor…

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Crypto Research

Say no to FOMO

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Do not FOMO into crypto. This is the rule that prevents you from becoming a bag holder.

ChatGPT suggested that FOMO is:

FOMO stands for “Fear Of Missing Out.” It refers to the social anxiety or feeling of regret over the potential missed opportunities, experiences or social events that others are enjoying or participating in.

You will see every social media platform where people shilled their crypto portfolios and told you how you missed the train.

This is not true.

Remember, there is never missing out of the train in the crypto because it is inefficient to sustain at the peak level for a longer time.

Rather, it will go down every time without problems.

You should do your research carefully and exam around the market sentiment.

When everyone says you are missing out, it is a time that the market is about its peak and hype.

You need to stay away from the social media and observe to see how the market performs. 

When everyone says the crypto is not more extended work, you should prepare to see how it may prepare itself to come back.

It is not always the case, but it usually works this way.

Do not influence by the social media shiller but trust your research!

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Crypto Research

Crypto is a good investment or not

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Many people buy crypto to believe it is a great investment. However, it may not be the case.

I asked ChatGPT about the crypto investment and here it is:

Investing in cryptocurrency can be a good opportunity, but it also comes with high risk and volatility. It is important to thoroughly research and understand the cryptocurrency market before investing. Additionally, it is recommended to diversify your investment portfolio and not to invest more than you can afford to lose.

Here are some misconceptions:

First, crypto is not a traditional investment that requires a conventional way to invest. Instead, it is a catch-or-miss investment that you really need to time the market to make profits.

Second, you do not need to hold for too long if you need money quickly. Crypto tends to perform badly long term than average assets did.

Third, high risk only sometimes has high rewards. Many crypto with high risks may not ever provide high returns eventually and many go to zero instead.

Last, do not go FOMO because you are likely to become a bagholder.

There is not missing out and it is too late in the crypto. Rather, you should always keep an eye on the market.

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Crypto Research

Mother of all bubble

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We are heading into a bubble economy and there is one that is about to pop.

ChatGPT suggests that a financial bubble is:

A financial bubble is a situation in which the price of an asset, such as a stock or a commodity, becomes artificially inflated due to excessive speculation and investment. This can lead to a situation where the market becomes overvalued and eventually collapses, resulting in significant losses for investors. Bubbles can occur in a variety of different markets and can be caused by a number of factors, including low interest rates, economic growth, and investor sentiment.

Let’s take Tesla as an example.

Tesla CEO is Elon Musk, who purchased Twitter last year and believed the company can help Tesla to make more profits.

Does it? Or he tried to inflate Tesla instead?

If you go to Twitter, there is less opposition than a supporting voice.

Elon Musk sells Tesla cars and Tesla stocks.

People purchase cars to help pump the stock price and when stock price goes up, people want a new Tesla.

Despite all the bad reviews about the car and its questionable autopilot feature, Tesla cars sold quickly and stock goes up no question.

Is this a Ponzi scheme?

Similarly, cryptocurrency is also highly speculative.

It goes up a time to time, but people buy the narrative without further investigating how useful the crypto really is.

What if people stop buying the crypto, will that still go up?

What if the economy is so bad and the interest rate is high that people have less money to buy more crypto?

We will see how it goes.

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