Kavan Choksi on Navigating the Economy: A Guide

Successfully Surviving the 2023 Economy with Kavan Choksi

According to freelance business consultant Kavan Choksi, since the third quarter of 2022, companies in the U.S. have reported lower corporate earnings and slower growth. Moreover, this trend has continued into the first quarter of 2023. With all this, core inflation and ongoing rake hikes may be enough to cause an oncoming, mild recession.

People must know that it is important when investors parse out how efficiently companies manage pricing, control costs, and maintain margins during this challenging time. On the other hand, companies must focus on determining more chances for growth since borrowing is not a highly recommended option during this downturn.

Kavan Choksi mentions that many geopolitical events impacted the investment landscape in the past year. Events such as the War in Ukraine, protests in China over the country's zero-COVID policy, and political unrest in the U.K. all have far-reaching effects.

Despite this uncertainty, many expected economic assumptions leading into 2023 held up. The result was a historically low-interest rate environment, which fueled and ignited inflation. The magnitude of this inflation reached decades-high rates. While it may have been hard to predict, it certainly did not come as a complete surprise.

There is still quite an enormous amount of uncertainty economically and geopolitically. Investors need to consider this as they plan for 2023, warns Kavan Choksi. Caution is warranted, but remember the economic strength that brought us into 2022

The economic cycle is shifting. It is a certainty given the movement in rate policy. Despite this, there remains a large degree of power in important economic areas, such as low default rates and employment margins. And even if the level of growth attained over the last few years is not achieved, it is still very much possible for investors to reach their financial goals by remaining disciplined, avoiding overreacting to short-term noise, and maintaining a long-term view.

For more insights and updates on global finance, business, and economics from Kavan Choksi, visit his blog site. Click on this link to access the articles.