These forecasts are driven by deteriorating structural fundamentals. For example, credit card debt has even surpassed 2020 levels, with interest rates charged by banks barely higher than those seen before the post-2000 dot-com crash. And yet, labor force participation rates – or the proportion of the population able and working – have still not returned to pre-pandemic levels. In addition, inflation—as measured by the consumer price index—has jumped in recent years.
Economic forecasts suggest that we expect greater economic turbulence. The United States is in recession and this recession is expected to continue, with the Conference Board forecasting a further decline in gross domestic product (GDP) of 0.5% in the fourth quarter of this year. It also predicts that the recession will continue at least until the second quarter of 2023. This was before the collapse of the FTX crypto trading platform, which had profound downstream effects on investment portfolios and businesses. not crypto. Other more optimistic forecasts, such as those from the Federal Reserve Bank of Philadelphia and S&P Global, are barely positive for 2023 at 0.7% and 0.2%, respectively.
These macroeconomic indicators are also common outside the United States. Many – even the International Monetary Fund – have pointed to rising inflation due to rising energy prices in Europe, which is one factor, among others, contributing to recent EU forecasts European Union of near-zero GDP growth for the whole of 2023 This comes on top of its already long-term demographic challenge, namely that there are too many aging people out of the labor force and not enough new entrants , which has dire implications for GDP growth.
Related: The Market Isn’t Up Anytime Soon – So Get Used To The Dark Times
Although these macroeconomic fundamentals are beyond your control, there is still a lot within your control. We need to remember that we have substantial control over our lives and don’t need to be dragged into an economic downfall just because that’s what might happen to the global economy – we can still thrive individually. during a famine.
Here are five tips for doing just that.
Optimize the wait. Make the most of your time each day, which can mean learning a new skill or taking on freelance work that deploys your broader skill set. Especially with the rise of artificial intelligence and automation, certain tasks are becoming obsolete and new creative opportunities are emerging – and you can take advantage of this trend by learning the skills to perform these tasks. There are significant mismatches between demand and supply in some parts of the job market, such as jobs in artificial intelligence and cybersecurity, so consider learning a new skill that you can put to work.
Reflect and take inventory. It is far too easy to look at the circumstances in which we find ourselves personally or as a society and worry, but take stock of what is going well and what you are grateful for. The holidays are a great opportunity to do this. By putting your situation in perspective, you avoid many mental rabbit holes that could make you more anxious and disappointed, which unfortunately only amplifies the difficult circumstances further. Even when circumstances seem bleak, remember what you’ve been through and what you’ve been through – it will inspire you to keep going.
Expand your network. Building relationships is part of the adventure we are on. Focus on people as actual human beings, rather than potential doors of opportunity. People are indeed doors, but dealing with people transactionally distorts your perspective on life and eventually closes those doors, because people don’t like to be treated like vending machines. (Would you like people to only talk to you based on what you could give them?)
Related: 5 reasons why 2023 will be a tough year for global markets
Cherish the small victories. We often focus on the big and flashy goals or aspirations, but neglect what is immediately in front of us. We have a lot more agency than we think! Whether you’re taking care of your property or writing a great report at work, demonstrating excellence in everything you do creates many more long-term options, which leads to truly fulfilling and successful employment opportunities.
Always dedicate part of your income to savings. Consider investing it in structurally sound digital assets. There’s no substitute for setting aside resources each month, whether crypto or fiat, that you can draw on when you need them most. There will always be an element of unpredictability in the world, so consider these savings your insurance policy in the event of a market downturn. Even though the crypto has gone through a winter, all assets have struggled as the overall market is down. But the future for major tokens, such as Bitcoin (BTC) and Ether (ETH), remains bright, and it’s only a matter of time before they rebound. Additionally, as governments become more volatile and inflation continues to rise, crypto can be a useful hedging and diversification strategy.
Don’t despair even when the economy falters. You and your family can still thrive!
Christos A. Makridis is a research affiliate at Stanford University and Columbia Business School and the CTO and co-founder of Living Opera, a web3 media art and technology startup. He holds a Ph.D. in Economics and Management Science and Engineering from Stanford University.
This article is for general informational purposes and is not intended to be and should not be considered legal or investment advice. The views, thoughts and opinions expressed herein are those of the author alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
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