Are we in a recession or is the inflation we’re facing and supply chain shortages, in fact, transitory?
The general definition of a recession is two consecutive quarters of negative gross domestic product, but the National Bureau of Economic Research defines it differently. Stating that a recession is, rather, a significant decline in economic activity that is spread across the economy and that lasts more than a few months.
So which is it? And how do we cut past the word play to simply come to the unbridled determination of what it is that we’re actually facing?
However one decides to label the peril that our economy – and wallets – is currently facing, we’re certainly facing plunges in global stock and bond markets regardless.
Government debt investors are dealing with 20% plus losses over the past year alone, according to Bank of America analysts and as cited by Reuters. They go on to claim that “The combined collapse in global stock and bond markets means global market capitalisation has been slashed by over $46 trillion.“
To put that in perspective, the United States gross domestic product is around $23 trillion according to World Bank.
Tune into the attached video to hear what Lynn Williams of Williams Capital Corporation has to say in regards to protecting your investments during this economic downturn.
In addition to the conventional investments such as 401k’s, Roth IRA’s, bonds and stocks, there is another strategic approach that has withstood throughout history’s financial turbulence and that is precious metals such as gold and silver.
“Even though the United States transitioned to a system of fiat money (deriving its value from regulation) in the early 1970s, many investors continue to use gold as an investment to hedge
against inflation, currency weakness, and other economic disruptions.” say Producer Price Index Program economists in a BEYOND THE NUMBERS article. You can find that article here.