Fool me once, shame on me; fool me twice, shame on the boomers. The coronavirus is chaperoning recession 2.0 for everyone to enjoy. Millennials started coming into the work force during the housing crisis of 2008, and now, in their prime working age, will likely have to deal with the coronavirus crisis of 2020 and the economic fallout that it brings. Except this time, they are in a much better position to weather the storm or even capitalize on the volatility. Millennials progressing into adulthood is a rare occurrence even today, but they were hit particularly hard by the massive recession in ’08. Just coming out of high school or college to face a job market that simply was not hiring. There was no way for the millennial to get a high paying job in order to jump in on the cheapened stock shares or foreclosed homes. We were just kids after all.
This time is different. Millennials have been grinding along in one way or another and the smart ones have likely paid off their student loans completely or never took out any to begin with. The smart millennials are in a relatively good position to come out of this recession reaping all the rewards. Many smart boomers and gen x’ers swooped in right after the housing collapse and purchased homes for what was seemingly pennies on the dollar. They had an opportunity to use their wealth to buy stocks at all-time lows. Smart Boomers made an absolute killing from the housing crash.
Think about it, since then, what has happened? A massive recovery. Stock market consistently reaching all-time highs. Multiple businesses valued over 1 trillion dollars (Amazon, Apple, and Microsoft). Complete and total housing recovery with home prices at highest they have ever been. Think about the opportunity that the boomers and gen x’ers had at this time, and many capitalized on it. Good for them.
Now it’s the millennial’s turn. This recession surprise could be the millennials chance to get in on the action. Get involved in investing, through stocks or real estate. If the economy is in recession, home prices may go with it. Housing has been way overpriced for many years now. Talks of the next housing bubble have already been swirling with reports of banks issuing the same sub-prime loans that they were doing 12 years ago. The market always recovers; at least it always has recovered in the past.
With that being said, we are not currently in a recession or even in a bear market quite yet. What we are seeing is a market correction. This was likely due anyways, coronavirus or not, but it will take some more selling and panicking before this is labeled a full-on recession. When it does, millennials should not be afraid. They should be prepared. They should be smiling. This is your turn. This is your chance.
Leave a comment and let me know what you think.