Big-Name Companies Tighten Their Belts

It seems like more people are waking up to the fact that the recession is already here. That means belt tightening and investing defensively for both companies and smart investors. The stories below reflect some of the economic reality we’re facing right now and show what sectors to keep an eye on. 

The recession is starting in the US and big companies are starting to tighten their belts.

Since last week: 

Companies are cutting guidance and stocks are pulling back. It’s obvious that the recession is here, even if it hasn’t been widely acknowledged. There’s not much to say but ‘be ready.’ 

Belt Tightening from the Big Names

With the recession already here, the big-name companies are scaling back. Recent news has both Apple and Goldman Sachs slowing hiring in the immediate future. In Goldman's case, there’s even consideration for cutting some underperforming staff. Essentially, the big names are tightening their belts, and that’s a behavior you’re likely to see across the board over the next few quarters. Here’s how you can prepare as the recession starts to play out. 

Batteries Save California 

Heat records are being broken across the globe, and the climate crisis is staring us right in the face. Here at home, while Texas is faced with another episode of its grid being under strain, California is able to cope thanks to wind and solar power generation. The battery technology that’s part of the state’s grid makes up 6% of its maximum on-peak capacity versus 0.1% in 2017. So it jumped 60 times in only five years. It plans to add more batteries over the next few years. This is perhaps a bellwether of the kind of revamped power infrastructure we’re set to see here in the US. and Google Team Up is adding Google Pay as a payment option so that Android users can buy cryptocurrencies. Google Pay is said to have about 100 million users, so that’s 100 million people who have another gateway for accessing the crypto sector. offers over 250 different coins so now Android users have the opportunity to get into the crypto market before it recovers. 

More Countries Are Pushing Uranium Demand

More countries are coming around on nuclear power. It was just announced that Egypt has begun construction of its first nuclear power plant. In the UK, the application for the construction of a nuclear power plant in Suffolk has been given development consent. Turkey’s Akkuyu nuclear power plant is getting a fourth reactor with construction having just started. Basically, more nations are committing to nuclear power, which means that demand for uranium is going to continue to skyrocket. The few companies that can provide it are going to do very well. 

What to Look For:

Senate leaders have introduced a bill meant to lift federal prohibitions on marijuana. The move is being headed by Senator Chuck Schumer and would allow states to set their own laws without interference from Washington. It remains to be seen what the future of the bill is but this is the most public step yet of something that is ultimately inevitable.
Next week, you can expect to see earnings from Microsoft, Apple, Google, Meta, and Amazon. These earnings are going to play a large role in how the market proceeds forward for the next few quarters. So this is a story you will want to keep an eye on.

Ryan Stancil

Ryan Stancil
Editor, Daily Profit Cycle