Jeff Bezos issued a warning, said you might want to rethink buying a 'new automobile, refrigerator, or whatever'

Jeff Bezos has warned that tough economic times are coming and advised against making large purchases like new automobiles or refrigerators. He suggests tightening budgets and being cautious with spending. Despite the economic downturn, certain investments like real estate and gold may still perform well. Real estate, in particular, has shown resilience during times of rising interest rates, and platforms like First National Realty Partners and mogul offer opportunities for fractional ownership and steady rental income.

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Amazon founder and executive chairman Jeff Bezos sounded the alarm 3 years ago.

In an interview with CNN, Bezos said that the economy “does not look good right now.” (1)

“Things are slowing down. You're seeing layoffs in many many sectors of the economy.”

While his comments may have been a few years old, the current market volatile suggests that you might want to tighten up your budget.

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“If you're an individual considering purchasing a big-screen TV, you might want to wait, hold onto your money, and see what transpires,” the billionaire recommends. “The same is true with a new automobile, refrigerator, or whatever else. Just remove some risk from the equation.”

That’s not a good sign for investors.

But not all investments are created equal. Some — like the three listed below — might be able to perform well even if the economy falls into a recession.

Real estate

It may seem counterintuitive to have real estate on this list.

While it’s true that mortgage rates have been on the rise, real estate has actually demonstrated its resilience in times of rising interest rates according to investment management company Invesco.

“Between 1978 and 2021, there were 10 distinct years where the Federal Funds rate increased,” Invesco says. “Within these 10 identified years, US private real estate outperformed equities and bonds seven times and US public real estate outperformed six times.”

Well-chosen properties can provide more than just price appreciation. Investors also get to earn a steady stream of rental income. But you don’t need to be a landlord to start investing in real estate.

First National Realty Partners lets accredited investors own a share of institutional-quality properties leased by national brands like Whole Foods, CVS, Kroger and Walmart.

You’ll get a stable, positive cash flow and the firm handles the work for you. FNRP’s team of experts vets every deal against a rigorous set of investment criteria and manages them in-house, so you don’t have to worry.

You could also try mogul, a real estate investment platform offering fractional ownership in blue-chip rental properties, which gives investors monthly rental income, real-time appreciation and tax benefits — without the need for a hefty down payment or 3 A.M. tenant calls.

Founded by former Goldman Sachs real estate investors, the team hand-picks the top 1% of single-family rental homes nationwide for you. Simply put, you can invest in institutional quality offerings for a fraction of the usual cost. You can catch a Yahoo Finance interview with CEO Alex Blackwood, discussing why he started mogul and how it can help those who can't afford a home get in on the real estate market.

Each property undergoes a vetting process, requiring a minimum 12% return even in downside scenarios. Across the board, the platform features an average annual IRR of 18.8%. Their cash-on-cash yields, meanwhile, average between 10 to 12% annually. Offerings often sell out in under three hours, with investments typically ranging between $15,000 and $40,000 per property.

Every investment is secured by real assets, not dependent on the platform’s viability. Each property is held in a standalone Propco LLC, so investors own the property — not the platform. Blockchain-based fractionalization adds a layer of safety, ensuring a permanent, verifiable record of each stake.

Getting started is a quick and easy process. You can sign up for an account and then browse available properties. Once you verify your information with their team, you can invest like a mogul in just a few clicks.

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Gold

Gold is considered a natural hedge because, unlike paper currency, it can’t be printed at will by central banks. That scarcity is part of what gives the metal its enduring appeal.

It’s also widely viewed as the ultimate safe-haven asset. Gold isn’t tied to any single country, currency or economy and when financial markets turn volatile or geopolitical tensions flare, investors often flock to it — driving prices higher.

A gold IRA is one option for building up your retirement fund with an inflation-hedging asset.

Opening a gold IRA with the help of Goldco allows you to invest in gold and other precious metals in physical forms while also providing the significant tax advantages of an IRA.

With a minimum purchase of $10,000, Goldco offers free shipping and access to a library of retirement resources. Plus, the company will match up to 10% of qualified purchases in free silver.

If you’re curious whether this is the right investment to diversify your portfolio, you can download your free gold and silver information guide today.

Fine art

You probably think of art as just some canvas that makes your living room look nicer, but art has quietly outperformed other asset classes for years.

Art is part of a $1.7 trillion asset class according to Deloitte, which is roughly half the size of venture and private equity. Contemporary art has outperformed the S&P 500 by 131% for the past 26 years, and it has a near zero correlation to stocks according to Citi. Having a low correlation to stocks makes art a useful hedge against market volatility.

Masterworks makes it possible for every savvy investor to access an asset that has previously been limited to the ultra-wealthy. Instead of buying a single painting for millions of dollars, you can now invest in shares of individual works.

Simply browse their impressive portfolio of paintings and choose how many shares you’d like to buy. Masterworks will handle all the details, making high-end art investments both accessible and effortless.

Masterworks has distributed roughly $61 million back to investors. New offerings have sold out in minutes, but you can skip their waitlist here.

See important Regulation A disclosures at Masterworks.com/cd

Keep track of your money

With all your expenses, it's sometimes easy to lose sight of where all your money is going. From groceries to bills to subscriptions to streaming services, these days there are countless goods and services that are putting pressure on our wallets.

If managing a budget feels overwhelming to you, apps like Rocket Money can simplify the process.

Rocket Money tracks and categorizes your expenses, providing a clear view of your cash, credit, and investments in one place. It can even uncover forgotten subscriptions, helping you cut unnecessary costs and save potentially hundreds annually.

For a small fee, the app can also negotiate lower rates on your monthly bills, making it a valuable tool for keeping your finances on track.