Danielle DiMartino Booth, CEO and Chief Strategy Officer of QI Research, stated that the United States may currently be in the most severe stage of an economic downturn.

DiMartino Booth said that the recent surge in bankruptcies in the United States is similar to the situation during the global financial crisis.

He pointed out: "We have already seen 19 companies with debts exceeding $50 million go bankrupt, with the highest post-pandemic value being 23. The current interest rates are taking us back to the period of financial crisis. We also see small bankruptcies, penetrating into individual bankruptcies, as American households have too many credit cards, autos, and personal loans, not to mention mortgages."

DiMartino Booth explained that the United States is in an "economic downturn," which may start from April 2024. She pointed out that the negative revision of private sector employment data is a key indicator. She added that in October, "the private sector actually lost 0.028 million jobs." Since January 2022, these downward revisions have become "systemic" and ongoing.

DiMartino Booth noted that since the Federal Reserve cut rates by 75 basis points in September, they will continue to cut rates to cope with the economic downturn. She added that due to recent data revisions, "the statisticians at the Federal Reserve are losing their minds", which requires them to recalculate their models and may push them to further cut rates.

DiMartino Booth pointed out that during the Trump administration, more "negative data" will be released, further revealing the extent of the economic downturn.

She said: "We know that most government statisticians are inherently very left-leaning, which may be one of the reasons we haven't seen bad data coming out. But looking ahead, they will be more willing to taint the Trump administration with negative data. We will realize that we are in a recession. This brings up the next question, when can we get out of this situation?"

In view of this, DiMartino Booth suggests adopting a defensive stance in the current economic environment. She recommends investing in "companies that will continue to pay dividends regardless of what is happening in other parts of the world," as well as "raising funds through short-term Treasury bills." She also remains bullish on gold, considering it a "reasonable choice for diversified investment and defensive positioning".