Two or tree months ago, everyone was talking about the coming recession in the world. This subject is important to us because it will influence our spending patterns. In a recession everyone will spend less because we become conservative as job losses will increase and general business will decline. Governments all over the world have been raising interest rates to force people to buy less to try and mitigate the impact of a recession.
A week or so ago the Federal Reserve did not raise interest rates giving out a signal that inflation fears and talks of recession are diminishing. They are lying thru their teeth!
You might think this is a very strong statement, but let’s dig a little deeper.
When businesses sell something, these goods come in packaging which usually is cardboard. These goods are packaged by the manufacturer and then shipped off to the retailers who sell to their customers. If the retailers experience a rise in demand for their products, the retailer will place larger orders to the manufacturers. The manufacturers will in turn order larger packaging material from the packaging manufacturers. Can you see where this is going?
It therefore stands to reason that cardboard box orders are a lead indicator of what is going to happen in the economy. Let us take a look at the graph of cardboard box orders below.
The graph to the left, courtesy Bloomberg, shows an enormous drop in the shipment of cardboard boxes in the fourth quarter of 2022. This is the biggest decline since the 2009 banking crisis and directly reflects the slowing consumer demand in the retail space. Detailed information can be found here.
The best way to protect yourself against the coming recession is to invest in physical gold and silver bars or coins. These investments will protect or even increase the buying power of your money for the difficult years ahead.
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Our Precious Metals research will assist you in making informed decisions
Owning Physical gold and silver will protect the buying power of your money as a safe haven investment
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