New home prices in China fell 0.8% in September.
It was the nation’s first real estate crash in six years, caused in large part by the bankruptcy of Evergrande. Meanwhile, residential sales fell 17%.
Given China’s huge role in world trade, its woes could easily spread to the American economy and lead to something worse than inflation: stagflation.
Stagflation refers to an economy with high rates of inflation, but without the strong economic growth that usually accompanies it.
It’s the perfect storm of bad economic data.
“We were kind of a one-off supply chain failure away from stagflation,” says economist and Asia expert Stephen Roach, referring to the many economic woes in China.
But here’s good news: even in stagflation, few sectors can still generate income.
Let’s take a quick look at three of them. These safe havens can be a smart way to cover your wallet with a few Nickel and digital dimes.
Services
Utilities tend to have the ability to withstand any kind of economic shock.
And whether boom or bust, people will still need to heat their homes in winter and turn on the lights at night.
Businesses also have high barriers to entry.
It is very expensive to build the necessary infrastructure to distribute gas, water or electricity. Furthermore, the industry is highly regulated by the government.
As a result, utilities typically operate as monopolies or oligopolies in their respective areas of operation.
Due to the recurring nature of the business, the segment is known for delivering reliable dividends to shareholders.
The best part? Utilities like Consolidated Edison, American Water Works, and NextEra Energy are increasing their profits year over year.
And these days, you can use cut pennies To access those quarterly income checks.
Technique
Tech is a volatile sector, but it also ranks high on the list when it comes to growth, something your wallet needs when trying to fight stagflation.
Even large, established tech companies are growing faster than most other industries.
For example, Apple reported earnings of $ 81.4 billion for the June quarter, representing a 36% year-over-year increase. Microsoft made $ 46.2 billion in profit on the highest streak, up 21% from the same period last year. Amazon’s revenue increased 27% year-over-year in the second quarter to $ 113.1 billion.
Of course, these massive, fast-growing tech games have been in high demand for years.
Amazon, for example, retails for more than $ 3,300 a piece. But you don’t have to buy a lot from Amazon. Popular investment apps allow you to build a diversified technology portfolio using “Bouillon slices” How much money do you want to spend.
meal
Lastly, we have the food industry, which includes grocery stores, food distribution companies, and food producers.
No matter where we are in the business cycle, people still need to eat.
Case in point: While the COVID-19 pandemic has posed serious challenges for many businesses, the supermarket giant Kroger has continued to thrive.
Kroger shares have fallen more than 20% in the last 12 months.
Then there’s Pepsico, which owns 23 brands that each generate more than $ 1 billion in estimated annual retail sales. Of course, inflation can drive up costs, but the administration plans to take “good, strong price increases” to counter those pressures.
In the food industry, consumers often bear the high costs.
Build a smarter wallet
Investing in this rapidly changing world can seem overwhelming.
Not everyone is willing to put their life savings in the stock market at an all time high.
The good news? You don’t have to go through everything with the investment. In fact, you don’t even have to take advantage of your savings.
using file Change remaining From your everyday purchases, some apps give you access to expertly designed smart wallets that automatically adapt as your money grows.
Remember: even if you generate $ 2.50 of surplus change per day, that only adds up to $ 900 per year from your regular purchases, and that’s before those spare pennies. Earn money in the market.
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
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