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This week the president of the Federal Reserve, Jerome Powell announced a ninth rise in interest rates, located in the range of 4.75% to 5%, in the midst of a banking collapse like that of Silicon Valley Bank and Signature Bank.
Although monetary policymakers are doing everything they can to control inflation, it is clear that Americans are expecting a possible recession, a negative economic factor that can influence personal financesIn this sense, specialists advise being prepared, since economic slowdowns tend to be cyclical.
Buy actions:
If the intention is to remain economically stable during a recession, it is best to invest in shares of the main sectors that can be: goods and consumption, health care, public services.
In the midst of an economic crisis, people will continue to spend money on food, health, electricity, household items, among others, for this reason this type of investment is the most profitable.
Buy precious metals:
During market downturns, gold and silver are often profitable, as due to high demand, these precise types of metals tend to increase in price during recessions, but there are several ways to invest in them.
The first is to buy your securities, in this case ETFs may be an option. The second, buy them physically like; coins or bars and then sell them; and the third buy a gold IRA, which will secure your money for retirement.
Buy real estate:
The 2008 crisis had great consequences on the real estate market, although it generated great concern and uncertainty for the owners, but for investors in this sector it was a moment of opportunity.
The purchase of real estate during a recession is feasible because the price of houses falls, it is cheaper to buy them and then rent them; with that you will have a constant income, while the economy recovers, andIf you want to sell you should wait for real estate values to rise and in this way get the most out of the property.
It’s important to keep in mind that a recession is a slowdown in economic activity that can last for several months, according to the National Bureau of Economic Research. The agency considers that since the 2008 crisis, The United States has not entered a recession, and that to do so, a broad analysis will be needed that takes into account both the unemployment rate, income, among others.
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