David Letterman was always my favorite late night host, when I was kid. He had his famous Top Ten List. I decided to steal his creativity and make my own Top Ten List. These are my top ten predictions for what might be coming in 2023. I have never liked making predictions, but I was asked to give it a shot and forecast where I think things are heading both in the financial sector and political sector as both play into each other often. Here are my predictions.
None of what I am about to share is financial advice. I deal in the realm of financial education. My predictions or forecasts are only meant to educate you on where I see things heading. Please contact your financial advisor for financial advice. Here are the things that I see as potential possibilities.
The Recession is Here to Stay: The U.S. is in a recession. The White House is trying to change the definition of a recession, but the reality is we are already experiencing a recession and I believe we are in the beginning stages. This isn’t ending anytime soon and I believe it is here to stay. There are two types of recessions in my opinion. The first is an Asset Price Recession and the other is a Productivity Recession. An Asset Price Recession is caused when the prices of assets keep coming down, where a Productivity Recession is caused by massive layoffs and unemployment skyrockets. It is my opinion that we are in an Asset Price Recession as we are seeing assets dramatically become volatile. Much of this is a result of the Federal Reserve and the raising of interest rates. I believe strongly that we are in the early stages of this recession and the worst has yet to come.
Prepare for The Greater Depression: I am not sure who coined the term "Greater Depression". I have heard a number of well-known economists and investors use it and most notably Doug Casey from Casey Research. I do believe that in the next 12-24 months we will see a massive crash occur here in the US. The danger is with the U.S. being the Global Reserve Currency that it will impact the entire world. The impact of a Greater Depression could be catastrophic. It would make the Great Depression of the 30’s look pleasant. The fact is that the Fed has built a house of cards and the whole thing could be coming down because of the Asset Price Recession we are experiencing.
Lower Standard of Living: I think that the average American is in for a world of hurt. The economy is very volatile and I believe that with the uncertainty of the financial landscape, we will see a lower standard of living. This will result in many people losing pensions, retirement funds, and struggling to live with massive inflation. This will result in a much lower standard of living for most Americans if they aren’t prepared or being proactive now. The takeaway is get prepared now.
The US Dollar Loses Top Status: It has been my opinion for years that the U.S. Dollar will lose its Top Status. You can look throughout history and see that global reserve currencies have a lifespan. The U.S. Dollar is in the range of coming to an end and with massive expansion and uncontrolled debt the U.S. will soon lose its status as the world’s reserve currency.
China Crashes: China was on its way to becoming the next super global power and replacing the US but I see China experiencing a massive crash. It is my opinion that this has already begun and we could see it evolve over the next 12 months. The Chinese financial system is on the brink of collapse and what comes next could be detrimental.
Bitcoin and Beyond: Bitcoin has seen gigantic highs in the last two years, but recently it has gone down in price. The interesting thing is it hasn’t gone down in value as much as some of the critics might have expected. It is my opinion that the volatility of Bitcoin is a good thing. No asset goes from zero value to exponential value overnight and no asset grows without volatility. Investors need to embrace the volatility and learn to harness it. It is my opinion that Bitcoin is going to only become stronger. The SEC has already classified Bitcoin as a commodity. This is good news for Bitcoin and the future is bright. This means you should expect volatility for the foreseeable future.
The Rise of Commodities: I would expect commodities to rise in value over the next 12 months. Gold and Silver always rise in value when crashes or corrections happen. It is very plausible to see Commodities rise quickly in value when a massive crash escalates.
Massive Entrepreneur Burnout: Entrepreneurs have been put through the ringer. COVID created a monster that we are still dealing with. The world went into lockdown and many entrepreneurs were not prepared. They scrambled to understand how to operate. The U.S. then put stimulus packages together and money was instantly sucked back into the economy, which led to great growth. Now the economy is in a volatile state due being in an Asset Price Recession due to the Fed’s monetary policies. This will lead to massive burnout in my opinion. The good news is some will see huge profits and wins if they are able to keep going or for those who may start businesses or brands. The takeaway is entrepreneurship will be good for those who can persevere even in the midst of hard times.
Profit Becomes Cool Again: I think for the entrepreneurs who are able to stay in the game, they will win big. I think profit will become cool again. FTX taught us that it isn’t cool to crowdfund when you aren’t able to produce profit. It is important for entrepreneurs and investors to think about profit first in this new economic season. You can win big but you will need to change how you operate your brand, business, or investments.
Inflation Skyrockets: The Fed is desperately trying to bring down inflation by raising interest rates. This has led to much of the volatility that we have been talking about. I do not believe that inflation will come down in the coming months. I think the opposite. I am thinking we see inflation only get worse over the next 12 to 24 months. This will lead to mass chaos and even more volatility. Politicians will try and respond. This will only make things worse.
I am more convinced now than ever before that financial education is necessary for people who want to not only survive, but thrive in these volatile times. Please feel free to reach out to us here at Explore Financial Freedom for a FREE CONSULTATION to learn more. We also encourage you to join our list to receive free information and resources or become a member of our Explore Financial Freedom Network.
Sincerely,
Adam Fischer, Founder
Explore Financial Freedom