888-550-4480
How To Prepare For The Coming Crash
As we approach the end of 2025, economic signals are mixed, with persistent volatility, slowing growth in some sectors, and ongoing concerns about inflation, debt, and labor market shifts. While a full-scale crash isn't the consensus view among economists—many project modest GDP growth around 1.5-2% into 2026 with unemployment edging toward 4.7%—layoffs have surged (over 1.17 million announced in 2025, the highest since 2020), tech and government sectors hit hardest, home sales remain subdued (existing sales around 4.1 million annualized), and consumer pressures mount from tariffs and sticky inflation near 3%. Perception shapes reality, and buried headlines about hiring freezes, inventory buildup, and weakening demand suggest challenges ahead. The good news? Crises often create the greatest wealth transfers, as Warren Buffett famously advised: "Be fearful when others are greedy, and greedy when others are fearful." Here's how to prepare thoughtfully and position yourself to capitalize.
Current Economic Warning Signs in Late 2025
Tech and broader layoffs dominate headlines. Over 182,000 tech jobs cut in 2025 alone, with companies like Amazon, Microsoft, and others trimming thousands amid AI efficiencies and cost-cutting. Small businesses report hiring freezes, with 63% unable to add workers due to high costs. Job openings have declined, and while unemployment hovers around 4.4%, private indicators show rising announcements and slower hiring—a "low hire, low fire" stasis that could tip with further shocks.
Housing market strains persist: Existing home sales rose modestly to ~4.1 million annualized in October, but inventory lingers at 4.4 months' supply, prices flat or softening in many areas amid high mortgage rates (though easing slightly). Commercial real estate faces development slowdowns from higher borrowing costs.
Global factors amplify risks: Tariff impacts pushing inflation higher (core CPI ~3%), supply chain disruptions, and reduced consumer confidence among lower-income households. Stock markets hit records but with narrow breadth—AI-driven gains masking broader weakness. S&P 500 up ~16-17% YTD, but volatility from policy shifts evident.
Yet, resilience shows: Consumer spending holds (driven by top 10%), corporate balance sheets strong in many sectors, and no immediate recession (probabilities 20-40% for 2026 per some models).
How to Prepare and Capitalize Conserve Cash and Build Liquidity
Cash is king in uncertainty. Cut frivolous spending—dining out, subscriptions, luxuries—to redirect funds into reserves. Aim for accessible high-yield savings (4-5% APY available). Even small cuts compound; treat savings as a non-negotiable expense.
Choose Your Investment Vehicle
Decide your focus: Real estate (multifamily resilient historically), stocks, crypto, or business. In real estate, multifamily offers cash flow and forced appreciation via operations—less volatile than single-family in downturns.
Become Competent Quickly
Education accelerates confidence. Books, podcasts, courses build knowledge. For multifamily, intensive bootcamps provide blueprints: finding off-market deals, analyzing (cap rates, NOI), raising capital (syndications/JVs), due diligence, financing, management.
Rod Khleif, host of Lifetime Cash Flow podcast and multifamily expert (owned thousands of units), offers virtual bootcamps covering these in depth—no sales pitches, panel Q&A, bonuses like deal analyzers/documents. Next: Check rodskhleif.com for 2026 dates.
Competence enables action: Raise private money (others' funds for deals), partner (you find/manage, they fund), or wholesale contracts.
Mindset for Opportunity
Fear paralyzes; greed in panic wins. Past crashes (2008) created fortunes for prepared buyers. Mindset training—goal-setting, overcoming limiting beliefs—ensures execution.
Diversify and Hedge
Gold/silver surged (gold +60% YTD >$4,300/oz) as hedges. Bitcoin (~$88-90K) as digital store. Tangible assets (farmland, commodities) hold value.
Skills and Community
Learn trades (repair, gardening) for barter/self-sufficiency. Build networks—local groups, investor communities—for deals, support.
Emergency Essentials
Stock 3-6 months food/water, generators, medical supplies. Sustainable habits (gardening, efficiency) reduce costs long-term.
Economic cycles turn, but prepared individuals thrive. Start conserving, educating, networking today—turn potential downturn into your greatest wealth-building phase.
