On June 24th, I wrote about how I’m prepping for the next stock market crash. Today, just 12 days after I shifted around my investments (8 days after the post), I can already share with you how it’s kicking butt!
In the post, I outlined my simple plan:
- We got out of debt completely
- We’re holding onto our current rental property
- We’re starting to hoard cash for the next rental investment, likely by the end of December 2017 after the market has crashed and properties are plentiful again
- Continuing to invest in our 401k – the plan is to buy low and own a bunch more shares once the market bounces back
- We’re investing in precious metals
So far, just 12 days later, we’re laughing all the way to the bank… 😉
How We Earned 23% on Our Investment in Just 12 Days
I still can’t quite believe it. In just 12 days, our investment increased in value by 23%… Can someone pinch me? Did this really happen? I’m I really this smart? …Of course the answer to the last question is no, but I AM pretty sure that this really happened.
On June 20th, I invested $1,000 (I know, I know, I should have investment more…hindsight of 20/20 right? Does anyone have a time-machine I could borrow??) in a precious metals motif. Mainly in gold and silver.
What’s a motif? It’s another great way to invest your money.
The reason for my investment? I figure the market has to tank pretty soon. It’s been almost 10 years since the last market recession, stocks are more volatile than ever, and the country’s debt load is skyrocketing. I mean how much longer can this go on? When the market tanks, precious metals tend to go up in value (we all saw this happen in 2008 and 2009), hence our investment 12 days ago.
Liz and I are secretly hoping that the bottom falls out of the market by the end of 2016. This will increase the value of our gold and silver holdings tremendously, and it should make housing prices more reasonable again. By the end of 2017, we plan to sell our precious metals motif, pool up our cash, and buy another rental property.
So really, the plan to buy gold and silver was a semi-long term one. I didn’t fully expect to earn 23% in less than 2 weeks!
But then Brexit happened…
On June 23rd, 2016, the United Kingdom decided to vote themselves out of the EU. The world definitely didn’t know what to think about this. In just one day the Dow went down over 600 points.
The next day, June 24th, the demand for gold and silver began to skyrocket with the stock market decline. Then, when the overall stock market popped back to it’s normal value again in just 3 days, people started getting even more concerned (since this is a sign of severe over-inflation in the stock market), which yet again increased the demand for gold and silver and spiked my motif even more!
I’m not sure how much higher this investment will go, but I figure I’m going to ride it through the next recession regardless. I figure that by December of 2017, I could earn a cool 100% on this motif!
What do you think? Should I hold onto this motif? Or should I cash in at 23%?
My name is Derek, and I have my Bachelors Degree in Finance from Grand Valley State University. After graduation, I was not able to find a job that fully utilized my degree, but I still had a passion for Finance! So, I decided to focus my passion in the stock market. I studied Cash Flows, Balance Sheets, and Income Statements, put some money into the market and saw a good return on my investment. As satisfying as this was, I still felt that something was missing. I have a passion for Finance, but I also have a passion for people. If you have a willingness to learn, I will continue to teach.