Wealthy people are extremely well diversified. Their main risk exposure is to variables that effect the entire market - e.g interest rates.
Wealthy people are extremely well diversified. Their main risk exposure is to variables that effect the entire market - e.g interest rates.
And they don't spend money, they take debt against their existing assets to fund projects and investments. So long as they can service the loans across economic downturns, they don't particularly have to feel the effects of a recession, outside of the mentioned opportunities to buy the market at a discount.