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The Rich V/s The Great Recession~ Who Wins In The Recession?

The Great Recession is sweeping the world. Many questioned whether the wealthy would be able to weather the storm or if the economic collapse would destroy them. The recession turned out to be more complicated than anticipated. As with every economic downturn, some people and groups are more likely to be affected than others. In this case, one group that has been particularly affected is the rich one. While the wealthy often have more resources to weather economic storms, they may also be more invested in financial markets and industries that will be experiencing a hard hit by the recession.

Some argue that the wealthy are more likely to come out on top in a recession, as they have the financial resources to take advantage of opportunities and make strategic investments. Thus, there are two sides to this misery, the one in which the ‘rich’ win and the one in which they lose.

In this article, we will discuss who UHNIs are and what kind of impacts they face during a recession. We will also talk about their strategies and how they stand strong against economic collapses.

Let’s start from scratch. 

Who Are Ultra-High-Net-Worth Individuals?


Who Are Ultra-High-Net-Worth Individuals?

An ultra-high-net-worth individual (UHNWI) is defined as someone with a net worth of more than $30 million, including their principal property. People in this group tend to be the wealthiest in the world, controlling a sizable amount of global wealth.

But economic meltdowns are the worst, and they tend to affect each and every individual, including the HNIs. In the coming segment, let’s look at the Great Recession’s effects on rich/wealthy people. 

Impacts of The Great Recession on The UHNIs


Impacts of The Great Recession on The UHNIs

While the recession affects people of all income levels, many might think it hardly affects the super-rich. But that’s not the case. Those at the top of the income spectrum are also not immune to its effects. Here are a few ways in which the Great Recession impacts the rich:

  1. Financial Market Volatility: Recessions can cause high volatility in the financial markets, impairing the value of UHNI assets. This can result in enormous losses for UHNIs, especially if they have a significant amount of their wealth invested in equities, real estate, or other volatile asset types.
  1. Income Reduction: In a recession, UHNIs’ income may be reduced due to the impact of the economic downturn on their enterprises or assets. This is especially difficult for UHNIs who rely on their income to preserve their high net worth.
  1. Difficulties In Obtaining Credit: UHNIs may have trouble obtaining credit during a recession since banks and other financial institutions may be more unwilling to lend owing to the increased risk of default. This might make it difficult for UHNIs to make new investments or fund significant acquisitions.
  1. Reduced Demand for Luxury Products and Services: During a recession, UHNIs may witness a fall in demand for the luxury goods and services they sell or supply, as customers may be more careful with their spending. This can have an impact on the profitability of UHNI enterprises or investments.
  1. Increased Taxes: The recession may also lead to changes in government policies, such as increased regulation or taxes on the wealthy. At times of recession, governments may seek to collect revenue to solve budget gaps created by the economic slump. This can lead to lower UHNIs’ net worth and discretionary income.

Thus, these are some consequences for the affluent, and since they are wealthy, the consequences are more severe for them. But in times of recession, they use their recession-saving tactics to get out of this whole downturn.

Let’s discuss the saving tactics used by the HNIs during a recession. 

Recession-Saving Tactics Used By HNIs 


Recession-Saving Tactics Used By HNIs 

Here are some possible recession-saving tactics that are used by high-net-worth individuals (HNIs) during a recession:

  1. Expense Reduction: HNIs may search for methods to reduce their expenditures, such as lowering their spending on luxury goods and services or negotiating lower prices for goods and services they require. This can assist them in saving money and reducing their outflows.
  1. Increasing Income: The HNIs search for the best investment during the recession to boost their income, such as looking for extra sources/ventures of income, investments, or negotiating higher service costs. This might assist them in overcoming any income loss due to the economic slump.
  1. Investing In Safe-Haven Assets: HNIs may opt to invest in safe-haven assets such as gold and government bonds and hedge funds like Secvolt. These assets tend to keep their value better. This can assist in preserving their wealth and give them a financial buffer.
  1. Diversifying Assets: They can diversify their investments by distributing their money across several asset classes and industries. This can assist in mitigating the effect of any losses incurred as a result of the economic slump.
  2. Seeking Expert Guidance: High-net-worth individuals (HNIs) may seek the advice of financial advisers or other professionals to help them navigate the recession and make educated decisions regarding their investments during the recession and other financial problems. This can assist them in minimizing losses and maximizing earnings.
Is investing a good idea in recession?


Is investing a good idea in recession?

Recession, depression, and inflation are all influenced by money and its moods, affecting people of all classes & income groups. This recession might be awful too, yet it may give you the most appealing investing prospects. So if you are wondering whether investing at this time would be helpful, the answer depends on your choice of selecting the investment area.

Some businesses may be undervalued in the market. Rest must have a business model that makes them more resilient to economic downturns. Hence, when you make up your mind for investment, ensure to understand the risk management and then put your trust into an asset or a company or a fund.

Moreover, financial markets follow a cyclical pattern of expansion, peak, recession, trough, and recovery. So far, every recession has been followed by a comeback, albeit the recovery hasn’t always been massive or swift. 

Furthermore, enterprises do not all behave similarly at various stages of the business cycle. Some may take years to recover from a recession; others may never recover. When you invest, you might gain or lose money. You will not incur losses if you do not invest, but you may miss out on the early phases of recovery, or inflation may reduce the purchasing power of your funds over time.

In the final section, let us figure out the answer to our primary question, ‘who wins in the recession’ & also explore a hedge fund that can help you combat the recession with its extraordinary strategies & systems. 

The Bottom Line 

Ultimately, the answer to the question of “who wins in a recession’’ depends on various factors, including an individual or group’s financial resources, the specific industries in which they are invested, and their ability to adapt and make smart financial decisions during difficult times. 

And if you are willing to build something in this recession, it could be a good time to invest in your portfolio. Leverage & short-term strategies are the kind of limitations that many investment options might face, but hedge funds do not. This allows a hedge fund to take on a higher level of risk and pursue a broader range of investment opportunities. 

To win in this recession, consider investing with Secvolt, a leading hedge fund managed by a team of qualified and experienced professionals. Secvolt’s team employs a mix of classic and calculated investing techniques like diversification of portfolio & providing an excellent risk management system to achieve exceptional results for their investors. 

With a track record of success and a commitment to transparency and accountability, Secvolt is an ideal choice for people who want to maximize their wealth, even during the recession.

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Ashish Verma

Ashish Verma is the founder and CTO of Secvolt, with close to 10 years of experience in the IT industry. He has been the technical backbone of the company and has worked tirelessly to make the technical infrastructure robust. He is a passionate entrepreneur who generates solutions that have the potential to bring change.

In order to ease the client’s interaction with Secvolt, he has strived to develop the business’s technological foundation and establish a user-friendly platform. Ashish has also contributed substantially to smoothening the company’s administration and ensuring that there are no lacunae in the broad structure of the organization. 

Early Years

Coming from a middle-class family, he was aware of the problems that people faced while using technology. He sought to create something that was simple to use yet had a powerful effect. As he studied computer science, he became eager to offer a solution to real issues. He began his professional career at Amdocs, where he gained expertise in client management while catering to more than 20 clients. Later, he moved to Citicorp, where he had exposure to the investment industry. His time at Amdocs and Citi enabled him to produce high-standard, efficient, and scalable technical infrastructure.

He left corporate jobs for his startup because he was passionate about working on the concept of a smart city platform. He expanded the concept internationally and even collaborated with Global Dignity-Kuwait. Things didn’t work out for him the first time. He states, “My failures didn’t stop me from experimenting and trying new things.” He rose from the ashes like a phoenix and founded FewerClicks, an End to End IT solution company.

He worked on the creation of Solster Finance, a decentralized financial platform based on the Solana blockchain. He created this platform single-handedly which has helped the team raise a $1M investment and a revenue of more than $5M within 6 months of launching. 

He has previously worked on many blockchain technologies and cryptocurrency ventures, which include Decentralized Finance Applications (Defi), Decentralized Applications (Dapps), File Contracts (SIA, record-keeper), Smart Contracts (rust, solidity), and NFT Development. His experience and effective communication have helped many team members understand Secvolt effectively and the underlying technology it is powered by.

He possesses the ideal combination of strategic thinking and excellent business insight. He is responsible for formulating technical aspects of the company’s strategy to guarantee alignment with business objectives. With his drive to experiment with new technologies, he has helped Secvolt achieve a competitive edge. Being in charge, Ashish never holds back in encouraging the different departments to make profitable use of technology, helping to grow as an unstoppable team at Secvolt!

Hanif Shaikh

Hanif Shaikh is the founder and CMO of Secvolt, with over 8 years of experience in the industry. He plays a crucial role when it comes to the growth of Secvolt. Since the beginning, he has acted as a mentor for each and every employee of the company, and he makes an effort to be accessible to his staff anytime they need him. 

Hanif first entered the Blockchain and Crypto world in 2016, and nothing has stopped him since. He views blockchain as a transparent platform that provides authority and accountability back to the people. He consistently believes that “overcommunication is better than miscommunication.” He has lived by this motto with his staff, clients, and networks.

Early Years

Hailing from Gujrat, a state in India, he is following his dream to contribute to making this world a better place. In the process, he has struggled, made some mistakes, and learned lessons from those mistakes to achieve success in life. His entrepreneurial attitude dates back to his childhood when he learned from his father’s business and aspired to have it all. He came from a humble background and had ambitions to succeed in life.

He has developed two successful businesses from scratch, and in the process, he has inspired young people to start their own businesses. He was an integral part of the Quora Mumbai Meetups and helped it become a great success in a short period of time. Later, he began organizing meetups to raise awareness about blockchain, cryptocurrencies, and their applications. He also shared his knowledge of ICOs, highlighted reputable ICOs, and established a small cryptocurrency community on WhatsApp groups.

He chose to go on a Blockchain Tour in India in 2019 and met some fascinating people. Throughout his journey, he has been able to build an extensive and robust network that has aided Secvolt’s growth. Because of his expertise and understanding of the Crypto Industry, he has been featured on several news channels and has advised the youth on the subject.

He is in charge of the company’s marketing operations and is responsible for developing its marketing strategy and vision. He oversees a group of passionate marketing professionals and plans promotional strategies with the goal of making  Secvolt a global brand. 

He is a perfect blend of a practical attitude and innovative business acumen. He believes in the ability of individuals to perform exceptionally well when given an environment to experiment and explore their passions; a culture that he has built at Secvolt.

Divakar Choudhary

Divakar Choudhary is the founder and CEO of Secvolt who has been trading for more than six years now. He started the business in 2018 with the conviction that if anybody could dominate the market, it was him. He poured all of himself into the business and turned Secvolt into a market-beating machine.

Divakar developed the fundamental quant models that perform risk management and capture alpha using his skills from the previous organization and his time spent in the market. In order to make the system effective, he backtested risk mitigation algorithms and worked on them for more than 4 years to produce results.

Early Years

He began his crypto journey in 2013 after getting his first gaming Laptop and melded in with the Blockchain community like sunbeams on the ocean. He created many YouTube channels at the age of 15 and businesses by the time he was 17. Technology has always piqued Divakar’s interest. He endeavored and succeeded at freelancing in his effort to achieve financial independence. However, he soon realized that freelancing would always keep him in the rat race, and the only way out would be to build a machine yielding generational wealth.

Soon, he started trading using his own capital but suffered a loss in the market. He says, “95% of people lose money & the rest 5% make money from the loss of those 95%.” He then began working on an effective technique to be included in this 5% after losing part of his own assets during the early stages of trading. He began evaluating quant strategies using statistical models.

With his methodology, he once produced a 20% ROI in a single month. With the zeal of creating something exceptional, he borrowed money from friends and family and generated decent returns for them using primitive quant models. Month after month, the system’s efficiency and the competence of the man behind it allowed for excellent market returns.

In the beginning, Divakar worked on his laptop for over 18 hours. It took every ounce of his energy as he executed about 530+ deals daily for 4 years to create this company from the ground up. In 2021, he increased his volume by 827%, trading a total of $52 million and hitting a single account.

In his words-

“What does becoming “THAT” GUY mean to you? Who did you need when you were young? Be that person!”

He is a perfect example of someone who followed his passion and made a fortune from it! He dreamt of creating generational wealth as a youngster, envisioned it as an adult, and is now making it a reality with Secvolt!