Recessions have been a part of economic cycles for decades; however, the combination of a few economic factors is causing serious concern that a new recession may be upon us. It’s a red alert. Financial markets have been experiencing disruption this month, driven by persistent inflation despite the drop in commodity prices, US tension with China and enforcement of tough lending standards on small banks throughout the country. In response, the Federal Reserve Board has moved to raise interest rates by twenty-five basis points.
The “bond king”, notorious for investing prowess, Bill Gross and Jeff Gundlach have voiced their concerns about the possiblity of a recession. Even Federal Reserve Chair Jerome Powell’s preferred bond-market indicator is signaling that a recession is coming.
These warning signs have been particularly evident in certain parts of the US, most notably Miami. Boasting its own wild dreamy economy backed by crypto, the city quickly took a turn for the worse. Consequently, the years of “partying” it seems to have come to an end.
Deel, a popular HR startup whose mission is to break-down traditional barriers to recruiting talent by helping companies hire around the world, has shown extraordinary growth during the past year. From a small team of fewer than thirty employees to a team of more than two-thousand, Deel has reached record private valuation of twelve billion with its recruitment process. While the rapid growth was applauded, it seems the company has adopted a risky and cost-ferocious approach with serious consequences.
Additionally, the online rental market, especially Airbnb, has profited by the prevalence of the pandemic. This has been followed by an alarming event which has left some investors in confusion and despair. The so called “Airbnbust” has left some hosts’ bookings suffering and incomes plummeting and at the same time, brightening the days of others.
The growth of the hedge fund has raised eyebrows for some time and it is not surprising that Goldman Sachs alumni have become a top pick of the elite investors. Their knowledge, experience and relationship have raised the bar for other, non- Goldman Sachs employees.
In these tormented economic times, luck and success do not come without risk. It is essential to stay on top of economic developments in order to become informed, equipped and prepared on how to manage financial risks. With the right strategy and information, companies, investors and private businesses do have the capability to build a safe and successful economy.
Conclusion
Despite worrying signals of a recession, there is still hope. With the right protection strategies and knowledge, businesses, investors and private individuals can create a safe and successful economy. Although the economy is unpredictable, one thing is certain: the world’s top financiers, investors and businesses are always on the lookout for new opportunities, and Goldman Sachs alumni are a desirable asset that can make all the difference.
