Elon Musk foretells recession; 3 ways to protect your money 

– Elon Musk states that “Recession is Inevitable.” – The United States government redefines recession to avoid market downturns. – Ways crypto traders and global investors can survive a recession and the crypto winter.

Since the beginning of 2022, recessions have been the most prominent stories. The present economic climate is attributed to several macroeconomic factors across the world.  However, one of the chief reasons is Russia’s ongoing conflict with Ukraine. Analysts and market commentators have had their say on it, as has the wealthiest person on Earth, Elon Musk. According to him, the Recession is inbound. 

Not only does  Musk have this opinion, but many other CEOs do as well. According to a recent poll by the Conference Board, more than 60% of CEOs worldwide expect a recession in their area of operation by the end of 2023. Musk has previously commented on market downturns. He predicted that the US economy might fall into a recession and be “hard going” for 12 to 18 months. Elon believes that a recession is not as terrible as many people believe. He quipped that “an economic enema” would be needed to clear the blockage.

Elon Musk points to a 50-50 chance of a global recession

The United States Redefines Recession 

The US government has redefined recession in order to avoid one. It has done so to prevent its economy from falling into recession sooner than it wants. Or ever again. In a blog post, the Council of Economic Advisers, which is part of the president’s office, provided a new definition for recessions. The council stated that an economic downturn might no longer be defined by two quarters of declining real GDP, as has been done in the past. That implies the Biden administration would almost certainly not call a second consecutive quarter of negative growth a “recession.”

Instead, both official determinations of recessions and economists’ assessment of economic activity are based on a holistic look at the data—including the labor market, consumer and business spending, industrial production, and incomes.  Based on these data, it is unlikely that the decline in GDP in the first quarter of this year—even if followed by another GDP decline in the second quarter—indicates a recession.

White House statement

3 ways to protect crypto investments 

Investors may now direct their attention to consumer staples. Essential items such as food and drink, housewares, and personal care products are examples of consumer staples. Regardless of the economy's performance, the entire global population requires these goods. Many firms will likely significantly decline their business if the United States economy goes into recession. On the other hand, these daily goods will continue to be a need and desire for many people.

The second thing traders should concentrate on is the utility sector. They are made up of firms that provide electricity, water, natural gas, and other essential services to residences and businesses. The industry isn’t particularly exciting, but it is recession-resistant. The business is also well known for paying consistent dividends because of its recurrent nature.

The third method is to invest in the health sector. Healthcare, like any other area of human endeavor, is a defensive industry because it has no direct relationship with economic conditions.  At the same time, the space has significant long-term growth potential owing to strong demographic tailwinds. This is mainly due to an aging population and continuous innovation. Many individuals are unfamiliar with healthcare, and novices might have difficulty recognizing particular stocks. However, ETFs that invest in the sector can provide exposure to it while also providing diversification and profitability. 

Read More  Stories