Is The Sacred Account Recession-Proof?
I believe we are on the brink of a recession. Many of the indicators are showing it. Housing, markets, treasury yields, consumer purchases, transporting, vehicle sales, small business cash flows, and credit consumption. Not to mention reduced earnings reports with many fortune 100 companies.
What is a recession? Technically speaking, it is a reduced Gross Domestic Product (GDP) for at least 6 months in a row. If it goes longer than 2 years, it is considered a depression.
In a recession, what happens? Well, usually the stock market crashes, housing crashes, companies produce less revenue, and jobs are lost. It doesn’t always have to be all of those things and there are other symptoms as well. But those are the main ones we will notice in our day to day lives.
Did you know, in 2008, Americans collectively lost almost $13 Trillion in the recession?
A trillion is 1 million. 13 million. That is a LOT of money!
Today, we are going to explore our 5 most recent recessions, summarize them, look at the market’s returns, and also look at the Sacred Account’s returns during those periods.
Alright let’s have a look
- The 2008 Financial Crisis. Let’s start with our most recent and most memorable one. The Great Recession of 2008. This was the biggest financial failure since The Great Depression in the 1930s. This was basically a combination of banks loaning money they didn’t have to consumers who also didn’t have money at interest-only rates and introductory rates. The banks would then sell these toxic mortgages to Wall Street. Wall Street would then package them up and sell them to funds. Funds would then package them up and sell them to investors like you and I. Since nobody actually had money when the broke people stopped paying their mortgages, these debts defaulted. A spiral effect happened and ultimately caused an overall 37% average loss in the stock market in 2008. Imagine losing 37% of your retirement and your house too. However, in 2008, The Sacred Account not only didn’t lose money, but it actually produced a positive 7.9% dividend to account holders. And none of the companies we use needed government bailouts because they didn’t participate in the stupidity of the market.
- The 2002 Market Downturn. This was almost part 3 of a 3 part crash. This was the tail end of the tech bubble. This was a combination of inflated values on tech companies whose earnings didn’t match their valuations. It was a crash waiting to happen. Several online players went bankrupt, which investors should have expected, but were too caught up in the hype. The average overall market loss that year was 22%. That’s a big chunk to lose in a year. However, in 2002, The Sacred Account produced a positive 8.05% annual dividend to account holders.
- The 2001 9/11 Attacks. This one doesn’t need very much explanation as we all understand and know what happened. Unfortunately, the market was already trying to recover from the previous years' losses and this didn’t help. The 9/11 attacks combined with what was already going on spurred losses in the market of 11.9% in 2001. That same year, despite literally the worst possible scenario imaginable, The Sacred Account held firm and paid out a positive 8.5% dividend to accountholders and additionally paid death benefits to those policyholders who lost lives in the attacks.
- The 2000 Tech Bubble. The tech bubble was really a multi-year ordeal. It wasn’t a one and done. The tech companies crashed, several large corporations such as Enron were charged with fraud, and in the middle of it, the 9/11 attacks extended the whole thing. But the bubble began to burst in 2000 resulting in losses in the market of 9.1% in the year 2000. The good ole Sacred Account still produced a positive 8.5% dividend that year like clockwork and didn’t even budge the following year.
- The 1990 Financial Recession. In short, this was a deflationary period. The Fed had concerns about inflation and restricted the monetary policy in the U.S. The Oil Industry took a dump. We were wrapping up the cold war. And the cherry on top, about 1/3 of the country’s savings and loan associations had just gone broke. The market realized a 3.1% loss in 1990. Even back in the 1990s, the Sacred Account was doing its thing. In 1990, The Sacred Account delivered a positive 11% dividend to account holders.
I could keep going, but I’m just going to tell you a Sacred Account has made money every single year since 1954. For over 160 years straight, it has not been derailed by a recession or a depression. That’s impressive.
So is it recession proof? You tell me.
If you’d like to learn more about the Sacred Account and how you can protect your hard-earned money in this next recession click here.
Own Your Potential,
CEO & Founder of Wealth DynamX
Jerry Fetta helps his clients gain more financial knowledge, make more money, keep more of it, and multiply what they keep.
If you feel like one or more of these areas is costing you money and opportunity right now, then get more information about Jerry Fetta and Wealth DynamX by going to www.WealthDynamX.com/contact