Do you remember the last couple recessions in the Bay Area? What was it like for jobs, house values, and tech stocks? What would you tell the young’uns in order for them to prepare? I was young during the last recession. I don’t remember it being good times at all - family losing houses, not being able to get a simple job. But this was a while ago when I was in a different place and that recession may have been somewhat unique with the housing crisis.
If you think we are due for a recession... Lol... 1970s: economy heavily reliant on oil and oil crisis caused economy to shrink 1990: slowed economy, construction slowed, high unemployment 2001: stock market bubble popped on tech, lots of layoffs, high tech unemployment 2008: housing bubble popped due to unsustainable mortgages on lots of people affecting banks and making financing difficult and cascading to the rest of the economy, layoffs and companies closing
Time doesn't end a bull run lol
2001 dot com bust was brutal for the tech industry. I was in junior high at the time and my dad worked at Cisco, which was like the golden company of that era (highest market cap in the world). The stock declined 86%. Amazon stock fell from $100+ to $6. And those were the survivors. Many did not make it, especially startups. People who invested on a margin lost more than everything they had. At the end of it the NASDAQ had fallen something like 75%. The rest of the economy was hurt too, but silicon valley got slaughtered the most by far. Some over extended people lost their homes. There were layoffs. Companies would have shut downs to avoid paying staff.
Bad bad bad
Housing fell 30%. People lost their jobs and quite a few H1 had to leave. The people without savings list their homes. On the other hand, I was lucky had a good paying job and little debt, so it was actually not a hard time for me in particular, cheap prices and lots of traveling in the forced vacation. Only advice: 6 months of monthly expenses in cash. Be flexible.