Peter Berezin, the Chief Global Strategist of BCA Research, revealed the recession-proof assets that he believes can protect investors during a period of economic downturn. Berezin is a major crypto critic, who has called Bitcoin a complete fraud and believes that the cryptocurrency does not have any use cases.
According to Berezin, consumer staples and healthcare are good stocks to invest in to protect oneself during the economic downturn. Berezin believes that products that are important for customers to buy will perform reasonably well against those products which are discretionary.
Berezin’s View Of Recession
According to Berezin, the US is most likely not in a recession. According to him, the U.S. is in a recession only when the National Bureau Of Economic Research announces that to be the case.
Ever since the GDP of the second financial quarter has revealed consecutive quarters of negative growth, there is widespread debates over whether the US is in a recession. According to the White House and Fed chair Jerome Powell, the rest of the economy is doing much too well to be in a recession. On the flip side, many have accused them of changing the definition to fit their narratives.
Berezin’s view is much more aligned with the White House and believes that the strength of the labor market and unemployment numbers point to an economy that is not in a recession. Therefore, the need of recession-proof assets might not be required.
Berezin’s View Of The Fed
Berezin believes that the Fed would not be able to manufacture a soft landing. According to him, a soft landing has never been successfully done in the United States. Berezin also believes that inflation will fall to 4%.
Commenting on Fed chair Powell’s remark of another unusually large interest hike at the September FOMC meeting, Berezin believes that to be untrue. According to him, the Fed will reduce the hike to 50 bps and eventually even 25 bps.
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