Economists: This is the biggest threat to wealth … There is a ‎positive side to rate hikes

Economists have confirmed that it is still possible to build and preserve generational wealth, despite economic uncertainty

“There is a real opportunity for a soft landing for the economy,” said Mel Lagomasino, CEO and managing partner of WE Family Offices, which has locations in New York City and Miami. She added during the Financial Advisors Summit held by CNBC, “that she believes we will continue to suffer from a stagnation in profits,” noting the rise in labor costs amid worker strikes.

In her speech, she pointed to a positive advantage of raising the interest rate, considering that the rise in interest rates led to stock market fluctuations, but it created competitive options for investors, as they can put their money in very liquid and safe investments and obtain profits of 5%, 6%, or 7%. %”.

Lagomasino said that until the end of 2023, “the situation will be difficult, especially in light of the geopolitical environment,” and she urged investors to keep their savings in a “liquid” state.

With some experts still predicting a recession, experts participating in the summit said it is also important to protect generational wealth.

Lagomasino pointed out that the biggest threat to generational wealth is “concentration of investment in one aspect,” stressing the danger of putting “too many eggs in one basket.”

Rodney Williams, co-founder of SoLo Funds, went in the same vein, saying that concentration risks were highlighted in the tech community during the collapse of Silicon Valley and First Republic earlier this year. “His influence has affected many different fields. He urged the need to diversify investments.