Our economy is already in a recession. I don’t care what government officials tell us.
The U.S. economy has experienced two consecutive quarters of negative GDP. That’s the very definition of a recession.
It’s not a “transition,” as Treasury Secretary Janet Yellen euphemistically put it.
You know it… I know it. And most importantly, the market knows it…
Despite the recent rally, many stocks are still down at least 50%… We’ve seen a complete meltdown in the crypto market… And the worst bond-market collapse in at least a half-century.
I know it seems like there’s no place to hide.
But one corner of the market has a history of being both recession-proof and inflation-proof: Private equity (also known as pre-IPO investing).
While high-tech stocks are getting crushed, with companies like PayPal, Meta, and Netflix down as much as 46%, 47%, and 60% this year… money continues to pour into private markets.
According to Fortune, more than 80% of venture capital (VC) and private equity firms plan to raise capital in 2022. That’s up from 75% in 2021.
And the amount of money they’re raising is increasing. In 2021, private equity funds raised at least $733 billion globally, surpassing every previous year on record.
This year they’re forecast to raise $952 billion, and almost all of it will be immune from recession. (I’ll explain why in a moment.)
Now, with everything going on in the world, I know it’s hard to focus on ideas like pre-IPOs. People are too busy worrying about rising food and gas prices.
That’s why you will want to dismiss an important warning I have for you… But that would be a mistake.
A new crisis is imminent – one that will catch most Americans by surprise. It will be bigger than a recession… bigger than inflation… and bigger than a stock market crash.
And to prepare for it, you need to look outside the stock market.
Why Private Companies Are Recession-Proof
The beauty of private pre-IPO companies is they don’t trade on the stock market. So they’re virtually insulated from the volatility we’re seeing right now.
They’re also not beholden to shareholder expectations and the stricter regulations on being a publicly traded company…
That’s not to say that they’re completely unregulated or lack transparency… there’s just more freedom to set their own pace regarding growth, fundraising, and spending cash.
Unlike public companies, recession fears, interest rate fears, and market swings don’t affect the share prices of private firms. In fact, the prices of the companies we recommend in our private investment newsletter have remained stable since the outbreak of the war.
The best private companies built up substantial war chests before the pandemic. They can use that money to buy distressed assets on the cheap. And I expect them to continue the same during this conflict.
If the market stays volatile, companies can remain private until the conditions are more favorable for a public offering. So private companies have tremendous flexibility.
Studies by research firms like Blackstone and KKR show that private companies not only outperform the S&P 500… they also have lower volatility than publicly traded companies. And they perform better during challenging times.
These are all great reasons to consider private investments when fear and volatility are high like today.
But what I really like about buying into companies before they are public is that you often get a much better price than you would on IPO day.
Take Uber, for example. It’s down 23% since the beginning of the year. In fact, retail investors who invested on IPO day are down 32%. But pre-IPO investors are still up 1,769%.
Or look at exercise equipment maker Peloton. At $13, it’s down about 52% since its $27 IPO-day price. Yet pre-IPO investors are sitting on gains of about 9,280%.
And then there’s language learning software maker Duolingo. It’s down 28% from its IPO-day price. But pre-IPO investors are up 10,156%.
Friends, do you think the people who got into these deals early on the pre-IPO are worried about food inflation? Or stock market volatility? Or a recession?
No, no, and no.
Those who invested when those companies were still private are up triple and quadruple digits – despite the pullback. Meanwhile, public investors have seen billions’ worth of capital vanish into thin air.
This is why VCs will put almost one trillion dollars into pre-IPO shares this year – even during a recession. Because they know this is their best shield against the volatility caused by recessions.
And right now, they’re allocating the most money they have ever committed to an industry critical to surviving a coming global catastrophe.
A Private Company Solving a Global Crisis
Whether it’s record-high inflation… plummeting stock and crypto prices… or the U.S. economy entering a recession… It’s been a brutal year.
But the thing is… all the attention on those problems means we’re missing an even bigger crisis on the horizon.
Friends, I don’t care who you are, how much money you make, what kind of work you do, or where you live… This crisis will affect you.
But with every crisis comes opportunity. And the bigger the crisis, the bigger the opportunity.
That’s why I’m holding a free event called Countdown to Catastrophe on Wednesday, August 24, at 8 p.m. ET.
During this briefing, I’ll share all the details of this coming crisis… how one private company plans to solve it… and how you can profit from its success.
I believe anyone who gets in now – before the company goes public (pre-IPO) – will have a chance to make up to 42x their money. That’s enough to turn every $1,000 into $42,000.
The average annual gain of the S&P 500 is 10% per year. It would take you 40 years to potentially 42x your money. So this deal could pull forward four decades of market gains in as little as 12 months.
Right now, you can get shares for about 37 cents with a minimum investment of $500. But there’s a problem… this deal is so tiny that I can’t guarantee shares will be available for long.
If you miss this chance to get into the pre-IPO shares, the next opportunity likely won’t come until after the company goes public.
By then, I believe it will be virtually impossible to make massive gains from it because the price may be far higher.
So I’m interrupting my European vacation to tell you all about the coming crisis and how this tiny pre-IPO company could be at the heart of solving it.
Click here to reserve your seat for my event on Wednesday, August 24, at 8 p.m. ET.
Whether you take me up on the opportunity to get a piece of this 37-cent company or not, I want you to be prepared for this coming crisis that no one is talking about.
That is why we’ve created a world-class report on how to keep your family safe from this crisis…
It includes the steps you need to take right now… (while you still can)… and a way to double your money on a world-class company positioned for dramatic growth as this crisis plays out.
The report is absolutely free. All you have to do is attend my event on Wednesday, August 24, at 8 p.m. ET.
Remember… Private markets offer some of the best recession-proof opportunities today. So it’s no surprise hedge funds turn to them when the public markets struggle.
But we can do one better by investing in a private company working to address a global crisis… one that I can virtually guarantee will affect you and your loved ones.
Let the Game Come to You!
P.S. Because this crisis will affect so many Americans, I’m donating $1 for every unique person who attends the event – up to $50,000 – to a charity positioned to help American families impacted by this crisis.
This is my own personal money. It doesn’t come from my publisher, Palm Beach Research Group, or any other entity.
This charity is doing an outstanding job, and I am more than happy to write a personal check for $50,000 to support it…
I’ve even managed to convince a wealthy friend to match my contribution. So that could be as much as $100,000 raised for the benefit of American families.
You can learn more about this charity right here.