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It’s time to put away the sandals and bring out the boots (at least for many of our Northern Hemisphere readers). If you listen very, very closely you can almost hear the strains of Mariah Carey’s “All I Want for Christmas” growing louder.
But according to many experts and business leaders, winter is also coming for the economy. Persistent inflation and rising interest rates, the war in Europe, and lockdowns in China are all having a chilling effect on growth around the world. While nothing is for certain, a recent survey showed most US CEOs expect a recession in the next year. With all of these elements swirling around, here are some links that can help explain what’s going on or that we’ve found especially relevant now:
- “Siri, What is a Recession?”
- What a mighty dollar means for your money
- ♫ The interest rate’s connected to the… inflation ♫
- Some of our favorite inflation-fighting strategies (...and a few more here)
There’s no need to panic and the future isn’t set in stone, but an economic slowdown (particularly one that the Fed is pretty committed to) can affect your finances in a few ways. Typically share prices sink and unemployment rises. The labor market is already showing signs of cooling as companies tighten their belts. Experts keep reminding us that it is important to stay invested even if markets get more volatile, and we walk through a number of ways you can protect yourself and the cash you have squirreled away for a rainy day lower down in today’s newsletter.
Since we like to cover the many ways money intersects with your life, we cannot hold ourselves back from mentioning economic trends are also affecting the newest food trend “spreading” on our TikTok feeds, and it’s bad news or good news depending on where you stand. The price of the main ingredient in butter boards is at an all-time high and expected to keep rising as the US faces a major shortage ahead of the holiday baking season.
News you can use
- The aftermath of Hurricane Ian is proving that investing in climate resiliency pays off. CNN has the story of a 100% solar community that endured the storm with no loss of power and minimal damage. Meanwhile, Florida’s largest electric utility reports that its efforts to reinforce the grid, such as by burying power lines, are helping it to restore power more quickly.
- Fortune and Entrepreneur are both inspiring us with their latest lists of influential women reshaping our future. The women who made it onto Fortune’s Most Powerful Women list are transforming the world’s largest companies. And Entrepreneur’s 100 Women of Influence spotlights many founders who are influencing the way we reduce waste, heat our homes, diagnose diseases, and more.
- September 15 to October 15 is Hispanic Heritage Month and you can participate by supporting Hispanic and Latinx-owned small businesses or explore depositing money at one of the many Hispanic-owned or led community banks that lend to entrepreneurs. Since we’re talking about access to capital and achievements, we also recommend learning about Romana Acosta Bañuelos, who co-founded the first Latino-owned bank in California, started a multi-million dollar food company and was the first Latina US treasurer. Bonus fact: FWIW Advisory Board member Rosie Rios was the 43rd US Treasurer.