Are you ready to play chess with your economic future, with the dexterity required? We just had our 2018 San Diego Vistage Executive Summit with an economic update from Alan Beaulieu, one of our favorite economists who we follow in the Vistage Community – The Beaulieu Brothers of ITR Economics.
Here are the headlines I heard:
- Slowdown in the second half of 2018
- Mild Recession Q1/Q2 2019
- Another low/recession in 2022
- Boom time in the 2020’s, “the roaring 20s” record setting stock markets, house prices etc
- But in an era of rising inflation and interest rates, which many business leaders cannot remember or may never have experienced (anybody remember when the US Fed Funds rate was at 15-20% back in the 1980s?), so you have to be good at navigating price increases with your customers and vendors.
- The best hedge against inflation is Real-Estate, so borrow as much money as you can while interest rates are still low and you can still get long term/fixed interest rate loans (e.g. 30 year fixed mortgages) and put it into real estate, selling it all in 2029 because …
- Depression in the 2030’s. The party is finally over! Driven by:
- Healthcare Costs
- US National Debt
- “This will be like a forest fire” getting rid of the deadwood, clearing the canopy, letting in more daylight and sunshine, stimulating the green shoots of new growth and a new long wave economic cycle like this one we are still in.
- Vistage Members: find audio recoding and downloadable PDFs of presentation and handout here: San Diego VES April 24 2018 (you will need your Vistage login)
How will you assure that you are Recession-Ready and Depression-Dexterous? In business and in life? For you, your employees and your friends and family? Read more: