Economic Recessions and Depressions are one of the darkest parts of US history. Although there are a lot of recessions worst than the others, all of the recessions were marked by hard times.
As of now, no one seems to agree that there is a possibility for a recession in the current economy. After all, unemployment is 4%, the stock market is currently bullish, and some of the states saw a drop in the price of some important commodities. The U.S. Money Reserve, however, saw this time as one of the most challenging ones.
There is no escaping when a recession comes because it is a part of the economic cycle. People, especially the government and the businesses, will have to deal with it. Signs of a recession are high unemployment, and the slowdown of economic activities, both borrowings, and spendings.
Another one of the indicators is when the US Federal Reserve tries to raise the interest rates to slow down borrowings. Both the government and financial institutions will try to delay the inevitable, but the longer they delay the upcoming recession, the harder it will hit both individuals and corporations.
The 120th Month Mark
One of the strongest indicators that economic experts are watching right now is the 120th-month mark which was a hidden indicator of the 1990s recession. The dot.com bubble has been in a very favorable situation until it reached the 120th bullish month. People became very optimistic because the market has been bullish for so long.
Assets became overvalued and burst in front of their eyes when correction finally happened in the 120th month. We are currently in the 100th month of bullish activity, and a lot of economists and investors are on the watch. Reaching the 120th mark might trigger an uncertainty that can cause the slowdown of economic growth.
People who are paying their mortgages will be the first one to feel the effect if the recession happened. It can be remembered that it has only been a decade after the 2008 financial crisis and only a few years before the economy recovered back to its state before the crisis.
The debt recorded is almost as high as the debt level that was recorded before the crisis appeared. In addition, there is a tense atmosphere between the Republicans and the Democrats right now in politics. Read more: US Money Reserve | Biz Journals and US Money Reserve | Manta
Back then, both the Democrats and the Republicans are joined forces to sign the Troubled Asset Relief Program and the American Recovery and Reinvestment Act, which helped the crisis. Right now, the collaboration seems unlikely.
If there is a particular asset that still appraises in value during a crisis, that would be gold and other precious metals. During the last recession between 2007 to 2009, gold is one of the handfuls of assets that rose in valuation. In fact, the rose valuation went up by 26% and buying gold has been one of the ways to leverage the damage.
As of now, the leading supplier of gold and other precious metals is the U.S. Money Reserve. It is currently led by Philip N. Diehl, who was the 35th director of the US Mint back from 1994 to 2000. The company has been in operation since 2001.
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