Peter Berezin of BCA Research talks about the definition of a global recession and whether we are in a recession. It also discusses which assets are best to invest in during the economic depression. Since the famous analyst is anti-Bitcoin, the list focuses on alternative investment vehicles such as farmland.
How to invest during the crash? Does Bitcoin make sense?
Peter Berezin, Chief Global Strategist of BCA Research, has identified assets that will protect investors against a recession in the economy. Prominent anti-crypto Berezin views Bitcoin as a complete scam. He also argues that Bitcoin has no practical applications.
Berezin recommends investing in essential consumer goods and healthcare as a way to protect oneself during a downturn in the economy. Berezin is of the opinion that consumers will do relatively better than things that are optional.
Peter Berezin’s recession analysis
According to Berezin, the US is most likely not experiencing a recession. According to him, we can only speak of a recession when the US National Bureau of Economic Research declares it. There has been considerable debate over whether the United States is in a recession since the second fiscal quarter GDP showed negative growth in consecutive quarters. The rest of the economy is performing too well to fall into recession, according to White House and Fed chair Jerome Powell. On the other hand, many claimed that they changed the term to fit their story.
Berezin’s view is much more in line with that of the White House, and that the strength of the labor market and the unemployment rate indicate that the economy is not in recession. Therefore, it may not be necessary to have assets to withstand a recession. Berezin is of the opinion that the Fed cannot achieve a soft landing. He claims that a soft landing has never been effectively achieved in the US. Berezin forecasts inflation to reach 4%.
Berezin disagrees with Powell’s assertion that he will see an exceptionally significant increase in interest rates at the September FOMC meeting. He predicts the Fed will eventually cut the rate hike to 25 basis points, or possibly 50.
US GDP for the second fiscal quarter announced as -0.9%
Data show negative growth for the second consecutive quarter. According to many experts, this fits the general definition of a recession. The advanced forecast of GDP for the first quarter came in at -1.4%. However, this forecast was revised to a negative 1.6% growth.
Meanwhile, Michael Burry, founder of Scion Capital, accuses the White House of doing damage control. Also, John Cochrane of Stanford University says that NBER usually introduces a recession after it’s over.
However, the recession provides opportunities for crypto investors. According to crypto analyst Gareth Soloway, the market initially flopped due to recession fears. Prices rose sharply as the dollar fell and the possibility of another Fed rate hike diminished.
