So guys the recession globally is here right now.
It is a so called perfect storm!.
And based of most of the conversations we are having with our US clients the situation in America is very dire, even with the low unemployment numbers.
The amount of both personal and business bankruptcy filings in August and September of 2022 are true the roof!.
And we have seen nothing yet.
The worst is yet to come and it will stay with us for a few years at least.
Many younger people born between 1992 and 2002 have never seen this type of recession ever.
And we have to be honest as always and say that neither have we, even if we remember the 70s,80s,90s and 2008 crashes well!.
This is a super recession on steroids, that we are seeing right now.
We have the energy crisis of the 70s, the financial crisis of the the 90s and the real-estate crisis of the 2008.
This comes with a combination of America being more divided than ever and a raging war in Ukraine.
To top it all off we have a Chinese banking and real-estate crisis of a size we never seen in our lifetime before.
Our clients keeps asking the same questions every week?, what is happening and what will happen?.
No one can be sure of what will happen in detail.
But what can be said is that we know already now what will happen in the upcoming 12 months time when we talk about prices and finances.
Here is a check list on what will happen in the next 12 months time in the US as an example.
No1: All overpriced homes will drop between 20-50% in price, and all overpriced rentals will drop 30-50%.
People will start to leave blue states due to the high crime rates, which will also bring down real-estate prices across the board.
No2: Grocery prices will continue to rise, but more slowly and will stabilize in November of 2022.
But food cost will be a huge issues working and middle income families, and elderly people on a fixed income.
No3: The crime rates will continue up everywhere, across the nation, but mainly in the blue states.
No4: We will start to see a tsunami of foreclosures all over America and that will keep going on for a longer period of time.
No5: We are are already seeing huge amounts of cars being repoed on a daily basis.
No6: Companies will stop hiring and start firing in December of 2022.
We will see a lot of companies that survived the Covid-19 pandemic true loans, close their doors for good in 2022 and in 2023.
No7: Small to medium sized businesses will have issues with getting funding from banks and this will allow the corporate raiders to come in and swoop up shares in many companies for a lower price than the estimated market value.
No8: Poverty!, this will bring the divorce rate way above the todays 53%, maybe as high as 63% and money usually is a big thing when we talk about the reasons behind a divorce.
So broken families will be seen everywhere across the nation
No9: Wall street and your 401K will drop another 20% easily, so be prepared to work an extra 5-7 years from when you planned to actually retire for real!.
No10: Energy prices like gas and heating will stay high until the US goes back to Trumps energy policies again.
What can you do?
If you can avoid a few of these issues like foreclosure, bankruptcy that would be good for you.
The biggest thing you can do for yourself and your family is to make sure you keep your regular job and see if you can find a second and third job as a side hustle.
Another thing you can do is to stop using your credit cards and pay everything cash to avoid the 20+ interest rates.
The third thing you can do if you have a few rooms to many in your house is to find a relative or a friend who can rent 1 or 2 of those to help out with your mortgage.
So regardless if you are a business owner or an employee, buckle up it will be a very bumpy ride for the next 2 years time at least.
If you want to see the inflation chart you find it here.
And if you need strong advisors for your business, you can always reach out to us for a quote or choose one of our ready made packages.
You find them here.
https://mrlifeadvise.com/shop/
Take care guys.
Mrlifeadvise.
