With the Fed hiking interest rates another 75 basis points, Americans are hunkering down and expecting the worse.
It recently acknowledged that perhaps it waited a bit too long to try to damp down inflation, and we’re seeing the effects this year. For example, in 2021, the Fed’s use of the term “transitory” to describe early signs of inflation proved to be, well, transitory.
We’re now in the midst of the most aggressive interest rate hikes in 40 years, and the economy is still going to be slow to respond, unfortunately.
When surveyed in June, the New York Fed predicted that, come June of next year, prices will have risen 6.8% more from their current inflated level.
Of course, this is a pretty mixed bag for Americans.
On one hand, efforts to rein in the out-of-control inflation are welcomed (no matter how slow moving the results may be). On the other, to do so, the cost of borrowing continues to rise, and people in the market for a loan are probably pulling their hair out.
For what it’s worth, we’re already seeing consumer habits shift on account of inflation. Walmart and Target recently announced that people are more often opting for necessities (like, you know, food) than they are luxuries (like big-screen TVs and patio furniture).
(So, if you’re in the market for a TV or furniture, you’d be wise to wait a couple of months for a good old-fashioned fire sale.)
But that’s not why we’re writing this.
While a new TV sounds nice, there could be opportunities for discounted purchases that prove much more beneficial in the long run.
That’s because, where taking on debt as a company might have been appealing in the early portion of the pandemic – when the Fed lowered interest rates to extreme levels – the current landscape makes that prospect less and less viable for companies with lean operations.
Meanwhile, with the shifting economic landscape, many venture capitalists have taken a more risk-averse approach. While that’s understandable, it might just prove to be a bit of an overreaction.
For savvy investors, VCs loosening their grip only gives more room to those who understand what to look for in startups.
That can be easier said than done, though. After all, there are more than 600 startups currently seeking investment via equity crowdfunding.
It’s understandable if that number feels a little overwhelming. Without direction, choosing which company to invest in can feel a little bit like playing Pin the Tail on the Donkey.
But for those who have an edge in evaluating startups, this becomes a much more attractive proposition.
That’s because, as we seemingly tumble toward a recession, there will inevitably be startups seeking capital today that become the dominant players of tomorrow.
Those who identify and invest in these companies could experience unprecedented returns.
And at the Angels & Entrepreneurs Network, we understand the opportunity that lays in front of you. It’s the biggest reason we’re dedicated to sending you multiple investment opportunities that meet our standard on a monthly basis.
As a member of the A+E Network, you receive the best of the best that equity crowdfunding has to offer.
If there are red flags with a startup, we’re going to find them. And you won’t ever have to worry about them.
That’s the benefit of having us in your corner.
While you still need a discerning eye and to decide what’s best for you, these are deals that some of the industry’s top minds put their stamps of approval on.
It’s our mission to make you the savviest investor possible. It’s our mission to bring you life-changing opportunities.
The A+E Network Deal Team