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Coping Behaviour- Keeping the Economy Afloat

Most of us have been sent on a roller coaster and if you have been on one then before the steep fall part most of us shut our eyes and shout-out loud when the fall happens. This is an example of coping behaviour. Now the similar but in a well-diversified roller coaster that is the global economy, we are at the point where the fall is ahead and the rise has ended.

This coping behaviour is helpful to keep the economy afloat while the central banks raise rates at the quickest pace to fight the highest inflation rates. But as seen in the past few weeks there are numerous announcements relating to job cuts in the tech industry but sooner than later it will spread to other sectors.

This might bring the ride to the edge where actual fall begins in the next six to nine months brining a lot of unexpected and not-so-pleasant quarters. It would result in a further change of coping behaviour that would lead to bankruptcy and defaults at a much higher rate than currently.

Though it might look like a steep fall ahead, the only thing that can help any of us is to prepare mentally and financially to handle the next 12 to 18 months of fall. The best case can be that no one puked or fainted further the long & steep fall.


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