Nearing 8%, inflation is at an all-time high in California, and business owners and investors have already started to feel the financial strain. Growing concerns about a prolonged recession and rising housing costs, mixed with worries about more frugal consumer spending, have business owners and investors rightfully concerned about how to protect their assets.
An area of additional concern to business owners is that price growth and interest rates are expected to remain elevated in the foreseeable future. Even business owners who are feeling long-term optimism about the state of the economy are not immune to immediate concerns.
According to a recent survey by Goldman Sachs, “89 percent of small business owners surveyed said that broader economic trends, like inflation and supply chain issues, are negatively impacting their businesses and 65 percent indicated they had raised prices to offset these increased costs.”
Higher-income residents are not immune to the potential impact of inflation either. Although low-income households tend to be the hardest hit, higher-earning business owners and investors are feeling the pain as well. Research suggests that roughly 18.7% of households earning at least $100,000 are having a hard time paying ordinary monthly expenses.
A recent report from Cal Matters echoes this sentiment. In the report, H.D. Palmer, a California finance department spokesperson, stated, “June numbers suggest that Californians paying their taxes quarterly — who tend to make most of their money from capital gains and stock options — are seeing “a lot of clouds on the horizon” due to rising inflation and interest rates, persistent supply chain issues and global market instability caused by Russia’s war on Ukraine.”
To make matters more concerning, an increasing number of Californians are beginning to deplete their savings account to combat rising expenses and an increasing cost of living. A report by Fortune Magazine in August 2022 suggests that the average American is depleting their savings account by roughly $100 each month; surely this number is higher for some people living in areas where the cost of living is more expensive than average.
All of this begs the question, what can business owners do to mitigate the impact of inflation and financial volatility? How can business owners adequately protect their organizations from going under during times of uncertainty?
Although there is no magic solution to these economic conditions, preparation and education may hold the key to weathering the storm.
As business owners and investors across the state continue to feel the financial pinch, this year’s Sunwest Economic Forum on November 3 promises to help business owners preserve capital during times of volatility. The Economic Forum features keynote speaker Eric Hovde, Chairman, and CEO of Sunwest Bank. In addition to his role at Sunwest Bank, Hovde is also the Chairman and CEO of H Bancorp LLC, a private bank holding company with banking operations on both the east and the west coasts, and the CEO and co-owner of Hovde Properties, LLC, a real estate development and management company. His experience and subject matter expertise in finance and business are unrivaled.
The Economic Forum is Sunwest’s most anticipated and significant annual event. Eric Hovde gives attendees a master class on the State of the Economy and ways to protect assets in today’s highly volatile market.
Refusing to sugarcoat the economic future, Hovde explains the incredible turning point at which our economy sits today. Rather than concentrate or debate about whether or not we’re in a recession, Hovde suggests the more important question to ask is how prolonged and how severe the recession will be. By focusing on these questions instead, business owners are able to see the whole economic picture and find reasonable solutions.
Hovde promises to present guests with compelling data to try and identify key economic indicators, unearth compelling trends, and forecast top priorities. Hovde’s in-depth analysis aims to help entrepreneurs turn today’s challenges into tomorrow’s opportunities. This event is popular with entrepreneurs and business people, as well as investors and everyday people struggling to manage their own portfolios in a toxic environment. The Economic Forum may also offer attendees the opportunity for professional networking with other like-minded business owners and investors.
The 2022 Sunwest Economic Forum starts at 7:30 AM on November 3 and will be held at the VEA Newport Beach in the Riviera Ballroom. The event includes breakfast and a 90-minute keynote presentation. Tickets are free and can be reserved online.
During a time when economic concerns are at an all-time high, and budgets are tightening for people nationwide, a dose of free education and expertise may offer some insights to help your business and investment portfolios weather the storm.
As Hovde so aptly suggests,“Better information brings better decisions.”
In times like these, being informed and prepared can be a tremendous advantage.