Bezos tells consumers to not buy big ticket items this holiday heading into possible recession
According to Bezos, consumers should "keep some dry powder on hand" by holding off on making large purchases.
Amazon founder Jeff Bezos recently shared some words of caution for those thinking about making large purchases this holiday season. In an interview with CNN, Bezos remarks that the U.S. economy seems to be heading towards a recession and that one of the best ways to “keep some dry powder” on hand in the event of a prolonged downturn is by delaying big purchases.
For example, holding off on buying items such as TVs, refrigerators, and cars. Bezos also advises small businesses to slow down on capital expenditures and acquisitions.
“Take some risk off the table,” Bezos said in the CNN interview. “Keep some dry powder on hand. Just a little bit of risk reduction could make the difference for that small business, if we do get into even more serious economic problems. You’ve got to play the probabilities a little bit.”
According to Bezos, the economy “doesn’t look great right now” given how “things are slowing down, you’re seeing layoffs in many, many sectors of the economy.” While some may not see the U.S. as being in a recession right now, or heading in that direction, Bezos strongly suggests that “the probabilities say if we’re not in a recession right now, we’re likely to be in one very soon.”
As reported by outlets like Business Standard, other investors have shared similar concerns about an impending recession alongside warnings to “batten down the hatches” while citing things like the Federal Reserve’s attempts to curb rampant inflation which hit a 40-year high back in June.
The U.S. isn’t the only country feeling the pain of inflation, with UK inflation recently hitting a 41-year high of 11.1 percent. Additionally, Japan similarly saw inflation hit a 40-year high with nationwide core consumer price index (CPI) rising 3.6 percent YoY back in October as reported by Nikkei.
Outside of recession talk, when Bezos was asked as to whether he intends to donate the majority of his wealth within his lifetime he gives an affirmative answer saying, “Yeah, I do.” For more on this, and his thoughts on the U.S. economy, be sure to read through the full interview on CNN.
To catch up with other financial news, check out some of our previous coverage as well including Amazon CEO Andy Jassy saying that company layoffs will continue into 2023, and the arrest of Sonic dev Yuji Naka who’s been accused of insider trading at Square Enix.
Morgan Shaver posted a new article, Bezos tells consumers to not buy big ticket items this holiday heading into possible recession
Personal fiscal responsibility is everything according to Bezos. For instance, while you are skipping that extra latte and avocado toast Jeff will doing his own round of holiday frugality by skipping his Christmas tradition of buying a new mega-yacht this year and being stingier with tips for the landscaping crews at each of his mansions.