Experts have hold on to the prediction that the country is about to face a recession. While some factors such as decrease in the unemployment rate might point otherwise, the recession is imminent, at least, according to experts who have been observing these metrics closely. The America’s Gold Authority, U.S. Reserve recently released informational resources related to the issue and the findings are not appealing.
According to the U.S. Money Reserve’s “Are We in Another Economic Bubble?”, recessions often occur as a result of businesses falling short of labor force and the wages starts increasing making businesses to reduce hiring people, the end result being raised interest rates by the Federal Reserve. Ultimately, the economy is affected.
With many experts agreeing on the imminent recession, how it will look is making them to worry. It is time to think about what the recession means to homeowners. During the 2008 financial crisis, the median market value of primary residences of homeowners fell by 18.9% between 2007 and 2010. These circumstances led to losses which in turn led to people losing their homes.
Afterward, improper lending practices bringing up a bubble in the housing market. The same path has been taken in the housing markets with experts crying foul of shoddy lending practices. Similar occurrences to the circumstances which surrounded the 2008 financial crisis have started to surface.
Another contributing factor to a future economic downturn is the high partisan nature of the federal government. The government is not showing any efforts to put in place measures to ensure swift response to an economic turmoil. If the political parties are having difficulty to agree on the way to approach the possible recession, it will be difficult for the federal government to formulate a cohesive response.
What remains is consumers finding ways to shield themselves from the effects of the possible recession. One way they can shield themselves is through looking for assets that withstood the past times of economic downturns. Gold is the most viable option for consumers to safeguard their assets.
During the previous financial crisis, gold was the best-performing asset class. From 2007 to 2009, gold retained its market value. Actually, its market value appreciated by a significant factor. As the potential for a recession become even more imminent in the eyes of experts, such information will come in handy for consumers. The information above is based on U.S. Money Reserve’s viewpoint on the state of the economy going forward.
About U.S. Money Reserve
America’s Gold Authority is a leading distributor of government-issued precious metal including gold. It also provides information to help consumers to make informed portfolio decisions. Headed by a former director of the U.S. Mint, U.S. Money Reserve has a vast understanding of personal financial freedom and public policy. It received a AAA rating from the Business Consumer Alliance.
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