The Rich Get Richer With Inflation For A Reason
The poor are waiting for the downturns to end or, worse, invested at 100%.
During an inflationary period, much of the market panics and sells at a loss because they really did not know what they were buying during the bullish period. This is because they made useless purchases during a boom period. It is very easy to invest when the whole market goes up; everyone looks like a great investor, which makes your money grow regardless of where you put it.
Generally, this type of period generates a wheel in which you invest a part of your savings. You see that everything is going well, and you invest more savings. So on and so forth until you find yourself fully invested at the end of the cycle. Not only that, but you will also usually have taken advantage of it to buy things you can't afford (e.g., your dream house, a sports car, etc.).
Money always comes back to its owners.
The real rich get richer during a recession because they can make good investments at a really low price. No two recessions are the same, and as we told you last Sunday, this reces…