Buy These 3 ETFs Today To Get Rich When Markets Crash

Summary

This video discusses strategies for navigating potential recessions and investing during economic downturns. It emphasizes the importance of safe investments, such as gold, treasury bonds, and defensive stocks, which tend to perform better during recessions. The speaker explores different types of ETFs, including dividend-paying funds, consumer staples, and defense stocks, highlighting their resilience during challenging times. Additionally, the video touches on concerns regarding the U.S. national debt and the global impact of economic shifts, encouraging viewers to stay financially savvy and prepared to capitalize on opportunities when markets go on sale.

Takeaways

• 📉 Recessions are inevitable — they've occurred every decade and no one can predict exactly when the next one will hit.
• 💡 Recessions create opportunities — many millionaires are made during downturns because savvy investors can buy quality assets at discounted prices.
• 🧺 ETFs simplify diversification — buying ETFs gives exposure to a basket of companies (less risk and less individual research than single stocks).
• 🥇 Gold often rallies in downturns — historically gold has performed well during major crashes as a hedge against dollar weakness and inflation concerns.
• 🪙 Bitcoin is not the same as gold — Bitcoin has sometimes outperformed during crises, but it often behaves like tech stocks and doesn't always move with gold.
• 🏛️ Treasuries become a safe haven — investors flock to U.S. government bonds in downturns, driving treasury prices up and yields down (price–yield inverse).
• 🛡️ Defensive ETFs can protect capital — dividend aristocrats, consumer staples, and defense/aerospace ETFs often hold up better during recessions.
• 📌 Examples of ETFs mentioned: GLD/IAU (gold exposure), TLT/F (treasuries), NOBL/VIG (dividend-focused), XLP/VDC (consumer staples), ITA/PPA (aerospace & defense).
• 🔁 Different recessions have different winners — each crash has a different cause (needle) so sector winners vary (e.g., healthcare in 2020, tech after 2008, defense/consumer staples in 2000).
• ⚖️ Every asset has trade-offs — gold is non-productive insurance, treasuries are low-return but safe, and defensive stocks offer income but can still fall.
• 🔍 Do your own due diligence — the presenter is not a financial advisor and stresses researching investments rather than trusting random online advice.
• 🌍 Macro risks matter — concerns about AI bubbles, an overvalued everything market, and U.S. debt/dollar health influence asset behavior and investor choices.
• 📈 Watch for bubbles and sentiment — rising gold (or any asset) outside of recession can signal either real economic worry or a speculative bubble.
• 🎓 Resources offered — the speaker offers a free investing master class and market briefs to help viewers learn how to research and spot opportunities.

Q & A

What is the primary concern about the strength of the US economy and its impact on gold prices in 2025?

The primary concern is the health and strength of the United States government, particularly its ability to manage the national debt. Even though inflation has calmed and we are not in a recession, gold prices are rallying because of worries over the US government's ability to manage its debt. People still trust the US dollar as the world's reserve currency, but there's underlying uncertainty about the government's financial situation.

What types of ETFs are considered defensive, and why do they tend to perform better during recessions?

Defensive ETFs include funds that focus on consumer staples, dividend-paying stocks, and defense-related companies. These ETFs perform better during recessions because they invest in companies that produce essential goods (e.g., groceries, toothpaste, soap) or those that are less impacted by economic downturns. These sectors tend to remain stable even during periods of economic uncertainty.

How do dividend-paying stocks offer safety during recessions?

Dividend-paying stocks are generally considered safer investments because they provide regular payouts to shareholders. For a company to pay dividends, it needs to be profitable enough to generate cash, which makes these companies more resilient during economic downturns. Even when stock prices drop, dividend investors can still rely on these steady income streams, making them more attractive in uncertain markets.

What criteria do ETFs like NOBL use to select stocks, and how does it ensure stability during recessions?

NOBL (S&P 500 Dividend Aristocrats ETF) selects stocks based on three criteria: the company must be part of the S&P 500, it must pay dividends, and it must have increased its dividend every year for at least 25 consecutive years. This focus on companies with a long history of dividend increases makes it a stable choice, as these firms are typically larger, financially healthy, and resilient during downturns.

What is the difference between NOBL and VIG in terms of their investment approach?

Both NOBL and VIG focus on dividend-paying stocks, but NOBL specifically targets dividend aristocrats (companies with 25+ years of increasing dividends), while VIG focuses on companies that not only pay dividends but also consistently increase them. VIG is more focused on companies with strong dividend growth potential, while NOBL emphasizes stability with a long track record of dividend reliability.

Why are consumer staples considered a safe investment during a recession?

Consumer staples, such as groceries, toothpaste, and hygiene products, are considered safe investments because people continue to buy these essential items regardless of economic conditions. Even during a recession, people still need to purchase these basic goods, which makes companies in this sector less susceptible to market volatility and more stable during economic downturns.

What are some examples of ETFs that focus on consumer staples, and what are their differences?

Examples of ETFs that focus on consumer staples include XLP (State Street Consumer Staples ETF) and VDC (Vanguard Consumer Staples ETF). XLP has around 37 stocks and provides more niche exposure to top consumer staples companies, while VDC has 106 stocks, offering broader exposure to the sector. VDC is more diversified, while XLP is more concentrated in its focus.

How do defense-related stocks provide investment opportunities during times of geopolitical tension?

Defense-related stocks, including those producing military goods like ammunition, tanks, and aerospace products, tend to benefit during periods of geopolitical conflict or war. As nations increase their defense spending in response to global tensions, companies in the defense sector often see increased demand for their products, making defense ETFs attractive investments during these times.

What is the significance of the US government's national debt in the context of treasury bonds and investor confidence?

Treasury bonds are traditionally seen as one of the safest investments because they are backed by the US government. However, there are concerns about the sustainability of the national debt, which has been growing significantly. Despite these concerns, the US is still considered the most powerful country, and the dollar remains the world's reserve currency. This makes treasury bonds a safe bet for many investors, but the growing debt introduces some risk.

What potential risks and rewards are associated with investing in gold during times of economic uncertainty?

Gold is often seen as a hedge against inflation and economic instability. During times of uncertainty, such as when inflation is high or when people lose confidence in the economy, gold tends to increase in value as investors seek safety. However, gold prices can also be subject to speculation and volatility, which means there may be risks of a gold bubble if too many people buy into it during times of fear, potentially leading to price corrections.