The Signs of a Recession Are Everywhere

Even as gas prices drop from their all-time highs, prices are rising in other areas that affect people’s day-to-day lives. That’s likely going to be the story for the next few quarters, so the best thing any investor can do is continue to be defensive. These recent news stories will show you just what areas of the market you should be paying attention to. 

Signs that we are in a recession.

Since last week: 

It was reported that consumer prices jumped 9.1% year over year, so food and shelter are draining even more from your wallet than they have been up to this point. Across the country, electricity and natural gas prices have also continued to climb. With summer officially here, those prices are likely only going to climb higher. Leadership promises to do something about it, but those words fall hollow on most ears when wages aren’t keeping up with those rising costs for many. 

Car Repos Going Up

The car market has been white hot since the pandemic, but that might be changing. According to recent reports, repossessions are up and most of the loans on those cars originated in 2020 and 2021. Once stimulus programs stopped, buyers didn’t have the cash to keep their new cars. This could be early signs of a bubble bursting and an indicator that a recession is already here. Fortunately, there are things you can do to minimize the impact it has on your finances.

Puerto Rico’s Solar Solution

Five years ago, Hurricane Maria devastated the island of Puerto Rico, destroying much of its electrical infrastructure. Now, residents of the island are preparing for this year’s hurricane season and one way they’re doing that is by installing solar-plus-battery systems on the rooftops of their homes and businesses. It’s an initiative mostly taken up by residents, but shows just how decentralized power distribution is a trend that isn’t going away. Whether it’s in Puerto Rico, here in the lower 48, or anywhere else, this new way of power management is the future.  

Gamestop Goes In on NFTs

Gamestop has entered the NFT sector with the launch of its NFT marketplace. On its first day, it brought in $45,000 in transaction fees, making it a large player in the NFT space. Could this be a normalization of NFTs and the blockchain? If so, it means that more people will be looking to invest in similar technology, like cryptocurrency. 

China’s Lithium Scramble

China has been making moves in securing lithium supply as the electric vehicle battery market heats up. Chinese companies have recently invested in mining operations in Argentina and Zimbabwe, and it’s a safe bet it won’t stop there. The commodities market is heating up, and everyone is scrambling for their piece of it. 

What to Look For:

As it stands, gas prices look to continue the month-long trend of declining. That’s good for the people who need it most, but in the context of still-rising inflation, it might not be the good news the markets need. Still, the narrative of those falling prices will likely continue getting pushed, if only to try and turn around consumer sentiment. 

The next Fed meeting is on July 27th, and noise is growing that Jerome and company are dead set on raising rates again. The recent CPI numbers have them trying everything they can to fight this inflation and it seems like they’ll keep trying until something breaks.

Ryan Stancil

Ryan Stancil
Editor, Daily Profit Cycle