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Gold or Real Estate? What Will Keep Your Savings from Devaluing During the Upcoming Crisis?

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Gold or Real Estate? What Will Keep Your Savings from Devaluing During the Upcoming Crisis?

Only Facts:

– The personal saving rate for Americans hit a 17-year low.

– Our planet is now experiencing a global migration crisis

– 2024 is the year of global elections in the world.

Will the economic crisis take all our money? 

Last year we heard from experts about the approaching economic crisis, there were numerous opinionsamong financial experts about the likelihood and potentialnature of an upcoming economic crisis in the USA. Here are some key perspectives that were prevalent among experts:Inflation Concerns and Federal Reserve Rate Hikes: Many analysts pointed out that the U.S.
Federal Reserve (Fed) might continue to raise interest rates in an attempt to curb inflation.
This increase in rates could slow down economic growth and raise the risk of a recession.Global Economic Uncertainty: Financial experts also paid attention to global risks, includinggeopolitical tensions, ongoing impacts of the COVID-19 pandemic, and supply chain issues, which could affect the U.S. economy.Financial Market Stability: Some analysts expressed concerns about potential overvaluation of assets in the stock market, which could lead to a drop in stock prices and increase financial instability.

Domestic Economic Factors: Internal problems, such as the U.S.’s long-term debt obligations and
potential changes in tax and budget policies, were also seen as factors that could contribute
to an economic crisis.

Optimistic Forecasts: At the same time, some experts maintained a more optimistic outlook,
believing that the American economy is resilient enough to overcome current challenges,
especially considering the strong labor market and consumer spending.

It should be noted that economic forecasts are often subject to change due to new data and external
events, so the current opinions of financial experts may have shifted since then.

How can we prepare for this economic crisis?

American financial experts typically offer a range of strategies and advice for preserving and
increasing the savings of U.S. citizens. Some of the most common recommendations include:

Diversification of Investments: Diversifying your portfolio is considered a key principle of investing.
This includes investing in different asset classes (stocks, bonds, real estate, etc.) and sectors
to reduce risk.Investing in Index Funds and ETFs: Many experts advise investing in index funds and Exchange-Traded Funds (ETFs) as they provide broad diversification and usually have low fees.

Long-term Planning: Long-term investment strategies are often seen as more reliable. This approach helps
avoid hasty decisions based on short-term market fluctuations.

Automating Savings: Regular automatic contributions to a savings or investment account help develop a habit of
saving and allow you to benefit from dollar-cost averaging.

Emergency Fund: Building an emergency fund that covers at least 3-6 months of expenses is recommended for
financial security in case of unforeseen circumstances.

Limiting Debt Obligations: Managing debt and avoiding high-interest rates on loans and credit cards is crucial
for protecting savings.

Utilizing Tax-Efficient Accounts: Investing through tax-efficient accounts, like Individual Retirement Accounts (IRAs)
or 401(k)s, can offer tax advantages and contribute to the growth of savings.

Education and Consultation: Regular self-education about finances and consulting with qualified financial advisors
can assist in making informed financial decisions.

Retirement Planning: Early retirement planning and understanding various sources of retirement income are important
for long-term financial well-being.

Tracking Expenses and Budgeting: Careful management of personal finances and budgeting help maintain financial discipline and avoid unnecessary expenses.

These recommendations can vary depending on the individual financial goals and circumstances of each person, so it’s
always useful to get personalized advice from a professional financial consultant.

Will real estate fall in price? Buying or selling real estate, which is better?

Real estate price forecasts in the USA can vary depending on a multitude of factors, including economic conditions,
Federal Reserve policy, regional trends, and even international events. Here are some key aspects often considered in forecasts:

Interest Rates: An increase in interest rates by the Federal Reserve can lead to higher mortgage costs, which in turn may reduce the demand for buying homes and exert pressure on the growth of real estate prices.

Economic Situation: Times of economic instability or recession are often accompanied by a decrease in demand for real estate, which can lead to a drop in prices. Conversely, during periods of economic growth, real estate prices may increase.

Supply and Demand: Insufficient housing supply compared to high demand can maintain high real estate prices, especially in popular regions and cities.

Geographical Trends: In some regions and cities in the USA, real estate prices may rise faster due to local factors,
such as employment growth, popularity among migrants, or infrastructure development.

Government Measures: Changes in tax policy, housing construction stimulus programs, or changes in borrower laws can also impact real estate prices.

Demographic Changes: Demographic shifts, such as an aging population or changes in housing preferences of younger generations, can also affect the real estate market.

It’s important to remember that the real estate market can be very different in different parts of the country, and local
conditions often play a decisive role in determining real estate prices. Additionally, forecasts are always associated with
uncertainty and can change rapidly in response to new economic data or political events.

If I want to buy real estate, which city is the best to buy in?

Certain American cities have been highlighted as potentially advantageous for real estate investments, based on their economic growth, demographic trends, and market conditions. However, it is important to note that the real estate market can change rapidly, and investments always come with risks. Here are some examples of cities that were considered promising for real estate investments at that time:

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