While there seems to be an uptrend when it comes the economy of the United States, experts continue to predict a coming recession, with the predictions getting more pronounced than before.
The unemployment rate is currently at 4%, and there has been a record-setting bull market, which would indicate economic growth, however, U.S. Money Reserve release information on the topic of recession, pointing to the cyclical nature of the economy.
Recessions occur, according to U.S. Money Reserve, when labor is getting scarce while wages are climbing. This results in businesses starting to reduce the number of people they hire, and in turn causes raised interest rates from the Federal Reserve. This chain of events eventually starts slowing down the economy, which means that some businesses could experience drops in profits.
Banks and other Wall Street players have an interest in implementing policies designed to delay the recession. In addition, incumbent politicians don’t want to go through an economic downturn due to the fact that it will upset voters as a result of falling wages and rising unemployment levels.
While it’s easy to understand why delaying the recession is the thing to do, U.S. Money Reserve notes that a manufactured delay could have negative effects on the economy. Read more US Money Reserve | Manta and US Money Reserve | Biz Journals
The company pointed out that creating an unnatural delay of the economic recession could lead to the creation of an economic bubble. A bubble occurs when some assets start getting over-valued, and the bigger the economic bubble is the more severe the negative effects are once the recession inevitably takes place.
— U.S. Money Reserve (@USMoneyReserve) May 23, 2019
In order to prepare for a recession, consumers have to formulate a plan in order to be ready for the economic downturn. The major concern is that wealth-bearing assets would get devalued during periods of economic turmoil, which means that the general recommendation is for consumers to move towards assets that have performed well in the past.
Gold has been one asset that managed to hold its value during recessions. Not only that, but during the last financial downturn, gold has been the best-performing asset class.
During the 2007-2009 period of economic turmoil, the precious metal retained its market value and also appreciated in value, rising by 26% at a time when the values of other assets were getting wiped out.
About U.S. Money Reserve
U.S. Money Reserve is a leading authority when it comes to gold and precious metals, focusing on offering consumers information designed to help support portfolio decisions.
The company’s goal is to serve customers by providing an understanding of personal financial freedom as well as public policy, and it is the only gold company that is under the leadership of a former U.S. Mint director. The company earned from the Business Consumer Alliance the AAA rating.
Learn more about US Money Reserve: