THE GLOBAL RECESSION IS INEVITABLE IN THAT THE SOONEST THEY CAN CLEAR THE STRAIT IN JANUARY 2027
The experts are saying the earliest the Strait can be cleared is January 2027, and the longer it remains blocked the longer it will take to restore the global economy.
The loss of fertilizer is already impacting the global economy. US farmers are estimating the cost of corn to climb fast. I am not going to pay 97 cents for one ear of corn. Not only will the price of corn impact the price of food, but it will also impact the price of gasoline.
Murphey's has a separate pump for gas with corn ethanol. Before the crisis it was already a lot costlier.
Trump being Trump called on countries impacted by the closer of the Strait to buy US crude. The US does not need foreign crude. But when you tell others to start buying US crude the price of US crude will go up.
JFK is reporting about a 20% reduction in jet fuel usage. Some airlines like Air Canada have stop flights to JFK. Other airlines are consolidating planes to save jet fuel. I am nervous the flight I am about to take to JFK, will be adjusted in Dallas, or on my return trip.
Short hops such as Brownsville to Houston may be cancelled. It is a lot costlier to fly the short hops and flights are already being reduced around the country for these short hops. My experience is the Brownsville's flights are pretty full, so maybe we will be safe.
The impact of the closed Strait will reverberate throughout the world economy. Transporting goods and services will go up.
If the experts are correct, and Trump can get the Strait open this week, it will not be until January 2027 before traffic is back to normal. This means a Global recession will be in place during the November 2026 elections.
I am already studying how the recession will impact my investments. As you know I do not favor panic selling. I always hold and the stocks recover. But now I have time to identify which investments will be minimally impacted by the global recession. If you have a good investment advisor, they are doing the same.
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