Report: Economic downturn threatens U.S. in 2019
DENISHA McKNIGHT | 10/1/2018, 2:05 p.m.
The Dallas Examiner
As the U.S. economy continues to grow by 3.1 percent this year, possibilities of an economic downturn threatens the nation by the start of 2019, according to a Congressional Budget Office report.
The 2.4 percent slow down could stunt financial gains, especially for African Americans. However, veteran investment adviser Angela E. Matthews has a myriad of strategies that could usher in prosperity and affluence for minorities.
“In the 2008 downturn, we had no idea what was coming when it hit,” Matthews said. “When it came, it came strong. But, now, I think they’re learning about that and the Congressional Budget Office is saying, ‘Hey, we want to start looking out for this. This could be coming.’ So, now we can actually prepare ourselves.”
Currently, the economy is doing well, with an increase consumer optimism with help from online platforms, which citizens could capitalize off of into the new year.
“One of the best things I always say to do is take more part in your investing,” Matthews advised as she discussed how to profit from the present upturn. “So, people have 401(k)s; they should actually check in on that and make sure that it is going in the right direction. Because the stock market has been doing so well and our economy has been doing so well, if you’re in your 401(k) and you see that over the past six months it hasn’t been doing well, then there’s something wrong about that. If you do see that, then you can make a change now while the market is still pretty good.”
The African American community and the stock market don’t have a close relationship. Black people are 35 percent less likely than Whites of similar means to invest into the market, which creates shattering effects to their ability to accumulate wealth, according to a Clarks Schwab and Ariel Mutual Funds study.
“I think it’s only a matter of time before we as a community start trusting ourselves,” the investment strategist said.
Black wealth would progress greatly once the community shifts from its intense consumer and budgeting mindset to the mindset of a stockbroker.
“If people would reduce that increase savings and invest more, they’re going to be ahead of the game,” Matthews expressed. “We don’t have as much consumer debt. I think we’re getting more educated, but it’s not about just looking at your money, stock up [and] every payday you’re putting something in your savings, but at some point you’re going to start getting frustrated.”
The former Ralph Lauren marketing expert affirmed that the growing African American economy makes the market more available to the community, especially with the use of technological advances.
“Our economics are growing as a community,” she said. “As African Americans, we may not make as much money as our Caucasian counterparts, but we are still having major growth within our personal income, especially as we’re getting more and more educated.”
The stock market is completely different than it was in the past. Now, stocks are priced at as low as five dollars to $1,000, according to Matthews. With trading apps such as Acorns and Robinhood, which she prefers, everyone could invest with little to no startup fees in companies such as Nike and Walmart for possibly $20 a share.