The U.S. Economy — The Crash Ahead — 100% Recession & Sluggish Recovery.

Opinion by Gerard Rotonda

The U.S. will enter a recession in early 2023. For Gen Z, this will be the first recession and a potential eye-opening experience for much of this young generation that has only experienced positive markets while we all lived dangerously for the past few years with inflation, government subsidies and work-from-home mandates. Priorities will change. Each time in U.S. history, when inflation was higher than 4% and unemployment below 4%, then this indicated the economy overheating and the U.S. has always decended into a recession within 2 years. At minimum, it may be a mild downturn followed by a painfully prolonged recovery, as inflation hit 8.3% in April (a 40-year high). Ultimately, the recession ends, yet there is a sting in the tail and a very slow recovery. Never before has The Fed unwound it’s $9 Trillion balance sheet, Quantitative Tightening “QT” will tighten credit in the U.S. The Fed will try to reduce its balance sheet by $3 Trillion. The top CEO’s such as Jamie Dimon are flashing the warning signs to “Brace Yourself”, economic “Hurricane” coming as a result of the hawkish Fed, rising inflation and Russia conflict increased the price of food and oil. The words from one of the smartest CEO’s in the world should have us all factoring this into our current strategic plans, tactics and allocation of resources so that we can stay in control and avoid a harsh landing. Gerard Rotonda