Even the super-rich are on edge right now over the economy.
Elon Musk and Jeff Bezos, two of the richest people on the planet (who usually don’t agree on much), are signaling some tension over an impending recession.
Bezos earlier this week commented that it’s time to “hit the hatches” — that is, prepare to survive an upcoming hardship or crisis — in a tweet that included a video of the CEO of Goldman Sachs saying there was good news. chance of a recession on the horizon.
Yep, the probabilities in this economy tell you to battle down the hatches. https://t.co/SwldRdms5v
— Jeff Bezos (@JeffBezos) October 18, 2022
Musk, meanwhile, was a little more upbeat as he tried (unsuccessfully, in the end) to ease Wall Street’s concerns about Tesla’s growth prospects.
In a call with analysts Wednesday night, Musk struck a confident tone, saying the company has “excellent” demand for the next quarter and that factories are running at full speed.
But he conceded that demand was “a little bit more difficult” and noted that Europe and China are experiencing “a kind of recession”. Musk also warned that Tesla would fall short of its sales growth target.
Shares were down 7% in early trading on Thursday, though Tesla reported near-record third-quarter profit.
Analysts and investors are increasingly concerned about Tesla’s ability to sustain its growth in the face of logistical problems and rising inflation.
The pound saw a two-day gain and UK government bonds tumbled as Prime Minister Liz Truss defended her package of sweeping tax cuts, stoking investor concerns about the country’s fiscal credibility.
The comments by Musk and Bezos add to a chorus of powerful figures who fear the economy will take a turn for the worse. Earlier this month, Jamie Dimon, the billionaire head of JPMorgan Chase, startled the entire stock market by saying that a recession could hit the US in less than six to nine months.
Even the non-billionaire—but still rich—Gwyneth Paltrow is losing sleep over it.
“The economy sucks,” she told the Hollywood Reporter this week. “I’m just worried about next year and how bad the recession is going to be.”
Other celebrities are also participating. Last month, rapper Cardi B talked about inflation and interest rates. “How are people surviving? I want to know.”
It’s a reasonable concern: researchers recently put the probability of a global recession at just over 98%.
Source: CNN Brasil
Joe Jameson, a technology journalist with over 2 years of experience, writes for top online news websites. Specializing in the field of technology, Joe provides insights into the latest advancements in the industry. Currently, he contributes to covering the world stock market.
