{"id":12644,"date":"2019-12-27T13:55:16","date_gmt":"2019-12-27T17:55:16","guid":{"rendered":"https:\/\/www.duck9.com\/?p=12644"},"modified":"2020-01-12T13:13:00","modified_gmt":"2020-01-12T17:13:00","slug":"downturns","status":"publish","type":"post","link":"https:\/\/www.duck9.com\/blog\/downturns\/","title":{"rendered":"Downturns"},"content":{"rendered":"
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By Larry Chiang<\/p>\n
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<\/td>\njason calacanis (@Jason<\/a>)<\/b><\/td>\n<\/tr>\n
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12\/26\/19, 5:55 PM<\/a><\/div>\n
At 49 I remember the 1987 crash, dotcom bust, 9\/11 & Great Recession \u00e2\u20ac\u201d so I\u00e2\u20ac\u2122m gifted\/cursed with a vigilance that whispers in my ear \u00e2\u20ac\u0153any day now, it\u00e2\u20ac\u2122s coming apart!\u00e2\u20ac\u009d<\/div>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

What They Don\u00e2\u20ac\u2122t teach you in school is how to deal with downturns. <\/p>\n<\/div>\n

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Three downturns…<\/div>\n
–1987 crash, <\/span><\/div>\n
– dotcom bust, <\/span><\/div>\n
– 9\/11 & Great Recession. <\/span><\/div>\n
Dealing with a potential downturn…<\/div>\n
-1- Keeping your powder, dry<\/div>\n
This is slang for having cash on hand. Cash is not always king. But cash is king during a downturn. <\/div>\n
This balance is…<\/div>\n
-2- Leverage. <\/div>\n
Overuse of leverage is when your asset position(s) are all borrowed upon and on. The opposite of cash is a position where your ass is hanging out in the wind. This is slang for \u00e2\u20ac\u0153if the asset you\u00e2\u20ac\u2122re mortgaged on does not appreciate at a vector greater than your cost of renting money, you\u00e2\u20ac\u2122re screwed\u00e2\u20ac\u009d<\/div>\n
For example, an ARM (adjustable rate mortgage) where you also have a second mortgage. <\/div>\n
For example, where you\u00e2\u20ac\u2122re \u00e2\u20ac\u0153upside down on your car\u00e2\u20ac\u009d. This is slang for you owe more than it\u00e2\u20ac\u2122s worth. <\/div>\n
-3- ratios. <\/div>\n
The ratio that\u00e2\u20ac\u2122s tantamount is money on hand versus money that\u00e2\u20ac\u2122s owed. <\/div>\n
-4- Gravity. <\/div>\n
Gravity used to not have an exact formula. <\/div>\n
The problem with downturns is that they\u00e2\u20ac\u2122re observed but impossible to specify. Downturns are inevitable. <\/div>\n
The reason downturns take away so much is that the general public saves zero money and overspends. This ratio is upset due to overconsumption. Gravity is the weight ratio between two celestial bodies. Are you gravitating towards my content at duck9. <\/div>\n
Deep Undergrad Capital Knowledge. <\/div>\n
It\u00e2\u20ac\u2122s based in \u00e2\u20ac\u0153credit<\/i><\/b>\u00e2\u20ac\u009d where you get a large line of credit but do not use that line of credit. <\/div>\n
\"image1.jpeg\"<\/div>\n
I call this last point gravity<\/i><\/b> because spending more than you make is an invisible force. <\/div>\n
Treasure Management is my #Ch2. <\/div>\n
https:\/\/www.youtube.com\/watch?v=ejeIz4EhoJ0<\/a><\/span><\/div>\n

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Timing is what wrecks people. There are 20 lectures that are #cs183vc and they all deal with timing. Curtailing spending is the most unpopular business tip. <\/p>\n

To bookend Jason with more @jason…<\/p>\n

1. Don\u00e2\u20ac\u2122t have debt<\/p>\n

2. Have a low burn rate \u00e2\u20ac\u201d as low as possible<\/p>\n

3. If you own a business keep 12 months of capital in the bank at all time<\/p>\n

4. When market corrects go into cockroach mode \u00e2\u20ac\u201d keep the lights on, but cut costs to keep runway at 6-12 months<\/p>\n

5. Be diversified<\/p>\n

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By Larry Chiang jason calacanis (@Jason) 12\/26\/19, 5:55 PM At 49 I remember the 1987 crash, dotcom bust, 9\/11 & Great Recession \u00e2\u20ac\u201d so I\u00e2\u20ac\u2122m gifted\/cursed with a vigilance that whispers in my ear \u00e2\u20ac\u0153any day now, it\u00e2\u20ac\u2122s coming apart!\u00e2\u20ac\u009d What They Don\u00e2\u20ac\u2122t teach you in school is how to deal with downturns.  Three downturns… […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[25],"tags":[],"class_list":["post-12644","post","type-post","status-publish","format-standard","hentry","category-deep-underground-capital-knowledge"],"post_mailing_queue_ids":[],"_links":{"self":[{"href":"https:\/\/www.duck9.com\/blog\/wp-json\/wp\/v2\/posts\/12644","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.duck9.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.duck9.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.duck9.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.duck9.com\/blog\/wp-json\/wp\/v2\/comments?post=12644"}],"version-history":[{"count":0,"href":"https:\/\/www.duck9.com\/blog\/wp-json\/wp\/v2\/posts\/12644\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.duck9.com\/blog\/wp-json\/wp\/v2\/media?parent=12644"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.duck9.com\/blog\/wp-json\/wp\/v2\/categories?post=12644"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.duck9.com\/blog\/wp-json\/wp\/v2\/tags?post=12644"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}