Market News: Bank of America and Wells Fargo CEO expect a recession in 2023.
Bank of America is expecting a recession to hit the U.S by the first quarter of 2023.
There is a major slowdown happening says CEO Brian Moynihan.
Economists are now expecting a volatile market to persist in 2023.
A recession may be coming in the first quarter of 2023, according to forecasts by Bank of America (BofA) economists.
“A recession is very likely in the U.S.,” BoFa wrote in its Year Ahead 2023 report. The bank points out that this recession can last through the third quarter of 2023.
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Major Slowdown in Economy Points Towards a Recession
Recession News: Bank of America expects a recession in 2023.
While retail payments surged 11% so far this year to nearly $4 trillion, that increase obscures a slowdown that began in recent weeks: November spending rose just 5%, Bank of America’s CEO Brian Moynihan said.
Even Wells Fargo CEO Charlie Scharf is saying, “there is a slowdown happening, there is no question about it. We are expecting a fairly weak economy throughout the entire year.”
American consumers are tapping the brakes on spending as the Federal Reserve’s interest rate increases reverberate throughout the economy, according to the CEOs of two of the largest American banks.
After two years of pandemic-fueled, double-digit growth in Bank of America card volume, the rate of growth is slowing.
Still, the downturn isn’t being felt equally across all retail customers and businesses, Wells Fargo’s CEO said.
Both Wells Fargo and Bank of America CEOs expect a recession by Q1 of 2023 and expect some sort of light at the end of the tunnel by Q4.
The implications of a recession end up affecting majority of the U.S. economy as corporations and businesses struggle to yield market capital in slow-growth conditions.
Wages are affected, unemployment skyrockets, and the banks get left with massive debt when Americans can no longer afford to pay their credit card bills or mortgages.
Do you think we will officially enter a recession in the beginning of 2023?
Want to become recession proof? Here are some steps you can take.
An economic downturn, a recession, call it what you will.
The U.S. economy is in a state of emergency and the average American is suffering financially.
From stock and crypto market crashes to the rise of gas prices and increased inflation, the middle class is in desperate need of help.
The problem is no one is teaching the middle class how to pivot.
Cutting back on expenses isn’t going to do it, you can only cut so much.
This article is going to help you identify several ways to pivot during a recession so that you can take care of your family during economic hard times.
Let’s get started.
Shifting Mindset from Defense to Offense
How to prepare for a recession.
During a recession, most people tend to contract, they tend to shrink (cut expenses, coupon, etc.).
Very few, however, expand and look for high reward opportunities.
It’s these opportunities that allows the few to shift their mindsets from defense mode to offense mode.
A defense mindset is idle, waiting for the government to do something about their financial setbacks (job loss, cut hours, lost pension funds, market crashes, etc.).
An offense mindset on the other hand is identifying how to keep up and overcome the changes occurring in their environment.
While most people focus on the things that are out of their control, few focus on the things that are within their control.
If you’re reading this blog, chances are you’re being impacted by our economy today and want to make more money.
Who doesn’t want to make more money?
Money is how we ensure our family’s security and wellbeing in America.
If you want to learn how you can pivot in today’s falling economy by earning more money, keep reading below.
Learn How to Use Leverage and You’ll Never Fall Short Again
How to prepare for a recession.
We all have the same 24hrs in a day, but do you want to know why successful people make more money than the average person?
It’s not because they work harder than you or because they’re smarter than you.
It’s because they use leverage.
Leverage is a multiplier of both time and money.
What would have taken you decades to accomplish, leverage gets it done at a fraction of the time.
Leverage is accessible to everyone, including you.
But we don’t grow up with mom and dad teaching us this.
So, what are some forms of leverage you can take advantage of as soon as you exit this blog article?
Starting a business around your hobby, passion, or skills has the potential to create that world you desire.
How does leverage play a role in building a business?
Think about this for one second.
If you work a 9-5 or commission job, you the employee are generating income for the leader of that organization and getting paid per hour or per sale to do so.
However, if you’re the business owner of a small business or startup, all revenue goes to your business account.
The leverage here is you’re now using your time to build something that will generate positive cashflow instead of giving it away for an hourly wage or commission.
If you don’t have the capital to start a new business, you can always use leverage by taking out a business loan and incrementally paying it back as your business picks up.
Using the banks money to make money is the proper way to leverage someone else’s capital to your advantage.
Day trading uses one of the biggest leveraging tools out there, the stock market/derivatives market.
Here, traders will require intense discipline in order to execute their trades with profit.
Day trading is certainly not for everyone, but if making hundreds of dollars to thousands of dollars per day sounds appealing, you can learn more about it here.
The incredible thing about trading the market is that traders can learn how to make money whether the stock market is booming or crashing.
This means that as long as you’re able to develop the skills necessary to become a consistently profitable trader, you will be able to pivot in a recession and actually make money while most of the economy faces turmoil.
Going on the offense means learning new skills and getting out of your comfort zone to be successful at something outside your 9-5.
You can follow my personal trading journey on Instagram or Twitter.
#3. Monetizing a Platform
How to prepare for a recession.
Americans are monetizing on Facebook, TikTok, Instagram, YouTube and other platforms such as blogs and podcasts.
If the idea of creating content at scale intrigues you, monetizing a platform could be a great leverage tool for you.
The bigger you grow your audience, the more income you may earn from advertising revenue, affiliate marketing, sponsored content, or other streams.
But the key here is to provide real world value that can help your audience in one form or another.
My blog for example has helped thousands of people invest in the stock and crypto markets for the first time.
Retail investors were able to profit big from investments such as Bitcoin, Shiba Inu Coin, Terra Classic, AMC, and HYMC from early ticker updates on Franknez.com.
Those who took advantage of the information came out profitable before the markets began to tank.
But not everything has to be educational – many creators are publishing content on pretty much any niche that people find interest in.
A platform will help you pivot in a recession by working 24/7 for you.
How to Prepare Personal Finances for a Recession?
In terms of your personal finances, you’ll want to allocate a good chunk of your income into a savings cash account you can build in case of an emergency.
Many opportunities will present themselves in times of an economic downturn, and when they do, we better be ready.
Becoming Recession-Proof
How to prepare for a recession.
Becoming recession-proof is really about taking action.
It’s about creating something or developing new skills that will allow you to overcome any hardships that come your way during economic adversity.
Living paycheck to paycheck is hard, learning new skills is hard, building something new and getting out of our comfort zone is hard, so choose your hard.
