Since, we don’t have a crystal ball, it is impossible to predict, accurately, the future! This is especially true, when, it comes to economic issues, including investment, real estate, interest rates, inflationary pressures, government actions, international factors, etc. What are the ramifications of inflation, recession, interest rates, Federal Reserve Bank decisions, etc? How can one, hedge – his – bet, to minimize unnecessary risks, while receiving a quality return, also? There is no simple answer because so many factors have significant influences. With, that in mind, this article will attempt to briefly, consider, examine and review potential factors, to help readers have a more – complete understanding of the possibilities.
1) Interest rates: We have experienced a prolonged period of historically – low – interest rates. This has created easy money because the cost of borrowing is so low. Both individuals and corporations have benefited, at least, in the immediate- term, from permitting home buyers to purchase more houses, because their monthly charges are low, due to low mortgage rates. Corporate and government bonds, and banks, have paid low returns. It has stemmed, from inflation, and created a rise in home prices, which we haven’t witnessed, in recent memory. The Federal Reserve Bank has signaled they will be ending this propping – up, and will also raise rates, probably three times, in 2022. What do you think that will cause?
2) Auto loans, consumer loans, and borrowing: The auto industry has been, significantly, impacted by supply chain challenges. When rates rise, auto loans and leases will be more costly.
3) THis pattern began after the Tax Reform legislation, passed at the end of 2017, which created the initial, new, trillion dollars deficits
4) Government spending, caused by the financial suffering and challenges, because of shutdowns, etc, because of the pandemic, created trillions more in debt. Unfortunately, the debt must be eventually addressed.
5) Perception and attitude: The past couple of years, apparently, created a public perception, plus many fears, with a crippling economic impact.
Either, we begin to plan, effectively, and with common sense and an open – mind, or many will be at – risk. Wake up, America, and demand better leadership, service, and representation.
Richard has owned businesses, been a COO, CEO, Director of Development, and consultant, professionally run events, consulted with thousands of leaders, and conducted personal development seminars, for 4 decades. Rich has written three books and thousands of articles. His company, PLAN2LEAD, LLC has an informative website https://markethuck.com and Plan2lead can also be followed on Facebook
