Paul Krugman warns of a greater than 50% chance of recession - 3 easy ways to protect your nest-egg

Yahoo

2 days ago

Moneywise and Yahoo Finance LLC may earn commission or revenue through links in the content below.
Paul Krugman isn't one to mince words. The Nobel Prize-winning economist says President Donald Trump's policies are doing serious damage to the U.S. economy — calling them 'crippling' in some cases and a direct threat to what once made America exceptional.
In an interview with Bloomberg Talks on April 8, Krugman blasted the Trump administration's sweeping layoffs at federal health agencies.
Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's how
BlackRock CEO Larry Fink has an important message for the next wave of American retirees — here's how he says you can best weather the US retirement crisis
Nervous about the stock market in 2025? Find out how you can access this $1B private real estate fund (with as little as $10)
'The CDC is laying off medical scientists so fast that samples are being left in research with nobody to look after them,' he said. 'And since ultimately U.S. technological progress relies a lot on the spillovers from government research, we're actually crippling — [making] America not great again.'
Krugman also criticized Trump's constantly shifting tariffs, arguing that they've created a climate of deep uncertainty — and that alone is enough to hurt the economy.
'[We've] never had a situation where you have no idea where the average tariff rate is going to be a few months from now,' Krugman said. 'This creates an impossible environment for business. It's hard to imagine a worse trade policy than what we're getting.'
Echoing other economists, Krugman believes that tariffs could drive up inflation and drag down growth — but given the unpredictability of Trump's policy changes, he says the short-term impact could be even worse.
'We may very well now think better than even odds that we are going to have a recession this year,' he warned.
While Trump insists that 'tariffs are about making America rich again and making America great again,' Krugman argues his implementation of them is having the opposite effect.
'If you wanted to kill U.S. exceptionalism, this is kind of what you would do,' he said.
The U.S. hasn't entered a recession, but with markets reacting to trade policy shifts, investors may want to prepare. If you're concerned about what's next, here are three easy ways to protect your nest egg now.
While stocks have taken a hit in the wake of sweeping tariffs, one asset has emerged as a bright spot: gold.
Often seen as the ultimate safe haven, gold isn't tied to any one country, currency or economy. It can't be printed out of thin air like fiat money, and in times of economic turmoil or geopolitical uncertainty, investors tend to pile in — driving up its value.
Ray Dalio, founder of the world's largest hedge fund, Bridgewater Associates, recently highlighted gold's role in a resilient portfolio.
'People don't have, typically, an adequate amount of gold in their portfolio,' Dalio told CNBC in February. 'When bad times come, gold is a very effective diversifier.'
Over the past 12 months, gold prices have surged by around 35%.
Those looking to incorporate precious metals into their retirement strategy can benefit from modern investment solutions, like those offered by companies like American Hartford Gold.
American Hartford Gold is a leading precious metals dealer – allowing you to invest directly in gold or silver.
With secure storage, expert guidance, and customizable investment plans, American Hartford Gold helps investors diversify their portfolios while protecting against inflation. Gold IRAs provide a tangible safeguard for retirement savings, combining financial security with significant tax advantages, making them an appealing choice for long-term wealth preservation.
Read more: You're probably already overpaying for this 1 'must-have' expense — and thanks to Trump's tariffs, your monthly bill could soar even higher.
Like stocks, real estate has its cycles, but it doesn't rely on a booming market to generate returns.
Even during a recession, high-quality, essential real estate can continue to produce passive income through rent. In other words, you don't have to wait for prices to rise to see a payoff — the asset itself can work for you.
It's also a time-tested hedge against inflation. As the cost of materials, labor and land rises, property values often increase as well. At the same time, rental income tends to climb, giving landlords a revenue stream that adjusts with inflation.
That said, owning a rental property isn't exactly as passive as it sounds. Between finding tenants, collecting rent, covering repairs and saving for a down payment, being a landlord takes time — and money.
The good news? These days, you don't need to buy a property outright to benefit from real estate investing.
For accredited investors, Homeshares gives access to the $36 trillion U.S. home equity market, which has historically been the exclusive playground of institutional investors.
With a minimum investment of $25,000, investors can gain direct exposure to hundreds of owner-occupied homes in top U.S. cities through their U.S. Home Equity Fund — without the headaches of buying, owning or managing property.
With risk-adjusted target returns ranging from 14% to 17%, this approach provides an effective, hands-off way to invest in owner-occupied residential properties across regional markets.
Another option is First National Realty Partners (FNRP), which allows accredited investors to diversify their portfolio through grocery-anchored commercial properties without taking on the responsibilities of being a landlord.
With a minimum investment of $50,000, investors can own a share of properties leased by national brands like Whole Foods, Kroger and Walmart, which provide essential goods to their communities. Thanks to Triple Net (NNN) leases, accredited investors are able to invest in these properties without worrying about tenant costs cutting into their potential returns.
Simply answer a few questions — including how much you would like to invest — to start browsing their full list of available properties.
When markets turn volatile and uncertainty looms, it can be difficult to know what moves to make — or whether to make any at all. That's where a trusted financial advisor can make a big difference.
A good advisor doesn't just help you pick stocks. They take the time to understand your unique goals, time horizon and risk tolerance — then help you build a diversified portfolio that fits your life, not just the market cycle.
With Vanguard, you can connect with a personal advisor who can help assess how you're doing so far and make sure you've got the right portfolio to meet your goals on time.
Vanguard's hybrid advisory system combines advice from professional advisers and automated portfolio management to make sure your investments are working to achieve your financial goals.
All you have to do is fill out a brief questionnaire about your financial goals, and Vanguard's advisers will help you set a tailored plan, and stick to it.
Once you're set, you can sit back as Vanguard's advisors manage your portfolio. Because they're fiduciaries, they don't earn commissions, so you can trust that the advice you're getting is unbiased.
Access to this $22.5 trillion asset class has traditionally been limited to elite investors — until now. Here's how to become the landlord of Walmart or Whole Foods without lifting a finger
Rich, young Americans are ditching the stormy stock market — here are the alternative assets they're banking on instead
Are you rich enough to join the top 1%? Here's the net worth you need to rank among America's wealthiest — plus a few strategies to build that first-class portfolio
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.