Peter Berezin, the Chief Global Strategist of BCA Research, has unveiled the recession-proof assets that can protect the interests of the investors during the recession. Berezin is a crypto critic who believes that cryptocurrency does not have any actual use and is a complete fraud.
Berezin names consumer staples and healthcare stocks to be a good investment, especially during the current economic situation. He believes that products that are important for customers to buy will perform better than discretionary products.
The US GDP for the second financial quarter has revealed consecutive quarters of negative growth, which has led to widespread debate over the US being in recession. The rest of the economy is doing well despite the talks of the US being in recession, according to the White House and Chair of the Federal Reserve Board, Jerome Powell. Whereas many have accused them of changing the definition to fit their narratives.
Berezin holds the same thought as the White House and believes that the US is not in recession. According to him, the US is only in recession when the same is announced by the National Bureau of Economic Research. He believes that the strength of the labor market and unemployment numbers indicate no recession in the current economy. Therefore, there might be no need for recession-proof assets.
Powell has remarked about another unusually large interest hike in the upcoming FOMC meeting in September, to which Berezin showed his disregard. According to him, the Fed will reduce the hike to 50 bps and eventually even 25 bps.
He believes that the Fed would not be able to manufacture a soft landing as it has never been successful in the US. According to him, inflation will fall to 4 percent.