DiMartino Booth解释说，Danielle DiMartino Booth, CEO and chief strategist of QI Research, said that the US may currently be in the worst phase of economic recession.
DiMartino Booth said that the recent surge in bankruptcies in the US is similar to the situation during the global financial crisis.
“We've seen 19 companies with debts over 50 million dollars go bankrupt, and the highest value since the pandemic was 23,” he said. Current interest rates take us back to the time of the financial crisis. We've also seen small-scale bankruptcy, which is seeping into personal bankruptcy because American households have too many credit cards, cars, and personal loans, not to mention mortgages.”
DiMartino Booth explained that the US is in the midst of an “economic recession,” and the recession may begin in April 2024. She pointed out that the negative correction in private enterprise employment data is a key indicator. She added that “private companies actually lost 0.028 million jobs” in October. Since January 2022, these downward revisions have become “systematic” and have been ongoing.
DiMartino Booth pointed out that after cutting interest rates by 75 basis points since September, the Federal Reserve will continue to cut interest rates to cope with the recession. She added that due to recent data revisions, “Federal Reserve statisticians are losing their minds,” which requires them to recalculate their models and may push them to cut interest rates further.
DiMartino Booth pointed out that during Trump's administration, more “negative data” will be released to further reveal the extent of the recession.
She said, “We know that most government statisticians are inherently very left-leaning, which is probably one reason we haven't seen bad data coming out. But looking ahead, they would be more willing to let negative data tarnish the Trump administration. We will realize that we are in a recession. This brings up the next question of when will we get out of this situation.”
In view of this, DiMartino Booth recommended taking a defensive stance in the current economic climate. She recommended investing in “companies that will continue to pay dividends no matter what happens in the rest of the world” and “raise capital through short-term treasury notes.” She also continues to be optimistic about gold, believing that gold is “a reasonable choice for diversifying investments and defending positions.”
