Whether we like it or not – or whether we want to admit it or not…
We’re balanced on a precarious edge.
With inflation higher than it’s been in more than 40 years and Omicron keeping the pandemic on everybody’s mind – our economy is on the brink.
If we’re not careful – we could find ourselves in a cycle of hyperinflation – and if that happens…
You can bet that there will be blood on Wall Street.
That is until steps are taken to tame inflation – which is a process that all depends on the Federal Reserve bank and its chairman, Jerome Powell.
They’ve talked a lot about tapering hiking the interest rates – but we haven’t seen any actual action from the Fed – leaving us in a state of economic limbo.
Interest rates WILL rise – the only question is: How high?
Let’s talk about it…
As a kid, what was one of the best parts about being sick and staying home from school?
Well… besides getting to stay home from school.
It was the daytime game shows that I loved – but none more than the Price is Right. Bob Barker with his long, skinny microphone – the pretty hostesses – the “Big Wheel” – all of it was awesome!
The whole show was fun – but my favorite game (besides Plinko, of course, which is EVERYBODY’S favorite PIR game) – was Cliffhangers…
I think it was the anticipation of it all. Would they guess correctly and keep him from moving too much? Or would they screw up HORRIBLY and watch that little yodeler fall off the edge?
As much as I loved this game on the show – I don’t like it so much in real life – as it seems that’s the exact game we’re playing with the interest rates.
Once the minutes of the December Fed meeting were released – it seemed to freak everybody out – as the talk of tapering and hiking interest rates put everybody on edge.
But for good reason…
As it seems that said interest rate hikes could arrive a lot sooner than investors were expecting – and faster too – as Goldman Sachs just predicted that the US will experience at least FOUR rate hikes in 2022.
Yes…
You heard that correctly: FOUR.
And Goldman Sachs isn’t the only one who is predicting four rate hikes – as JP Morgan Chase CEO Jamie Dimon recently revealed his thoughts on interest rate hikes on CNBC – saying, “I’d personally be surprised if it was just four.”
So, if that happens – do you know what is most likely sitting on the horizon?
If you said, “Another bull market?” – I applaud your enthusiasm and optimism – but you’d be wrong.
No…
The “R” word – Recession.
It seems like the last one JUST happened too – and now – we could be facing another one this soon? Come on, Washington – get you s**t together.
That said, what can we, as investors, do to protect ourselves if we DO enter another recession – and even more – is there anything we can do to come out wealthier on the other side?
The answer to that question is: absolutely – and I can help you do EXACTLY that with three easy steps.
There are actually three things that you can do right now that will help you prepare for a coming downturn – and it’s really nothing too drastic…
First, you may want to switch out some high growth stocks for some blue-chipper value stocks.
High growth stocks are great while the economy is booming – however, industries like tech tend to take a hit during downturns – so it may be prudent to start looking for some more value stocks with less growth potential and swap them for those high growth prospects.
The second thing you can do?
Add some bank stocks to your holdings.
The great thing about bank stocks – is that most banks have INCREDIBLE diversification with several streams of revenue – with interest on loans being one of the biggest.
When the rates go up – banks tend to profit the most – so why not jump in on those profits yourself?
And the third thing you can do is add more commodities to your portfolio.
While volatility and inflation are surging – commodities tend to be a safe haven for wealth – which is why many prudent investors prepare for recessions by moving into precious metals…
While gold is GREAT during economic downturns – it’s not the only answer: lithium, copper, silver are all fine and safe places to put your money generally.
Your money may not grow as fast as it would in say, a hot biotech opportunity – but it’s safe – and even small growth is still growth.
Of course, there are other options as well…
You can always turn to GorillaTrades for help – our top-rated recommendation service is one of the most trusted on the internet – because our system is built around HARD data. Not speculation or emotion.
And we’d love to have you on board for our next round of picks – but understand that GorillaTrades isn’t for everybody.
If not, then realize, this probable recession is the hand we’re being dealt – and unfortunately – there’s no mulligan…
We’ll have to play with what we have. And while we can’t stack the deck in our favor – we can bend the odds in our direction a little.
If it works on the Price Is Right…
It should work for us!
“I’ll tell you one thing, in what I do for a living, there’s no substitute for experience. I don’t care how much natural talent you may have… In the type of show I do, you can depend on surprises.” – Bob Barker
