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📉 Recession, Inflation, War? What This Chaos Really Means for Your Stocks
What I wish someone told me sooner)
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🏆 StartEngine just had their biggest quarter, with 30M revenue in Q1 2025, more than tripling YoY revenue (Q1 2024 was 9M)
🔓 The platform features initial investments starting at just $1,000 (versus 7-figure VC minimums)
👑 Led by CEO, Howard Marks, co-founder of Activision, and Kevin O’Leary as a strategic advisor
$84M+ has already been invested in StartEngine, but the window is closing soon. Until June 26, you can still secure your hares at this price.
Onto Sunday’s read by Simplify Wall Street.
📉 Recession, Inflation, War? What This Chaos Really Means for Your Stocks
The world feels wild right now.
📌 The U.S. is still battling inflation.
📌 The Fed is teasing rate cuts, but delaying action.
📌 There’s war in the Middle East.
📌 U.S.–China relations are icy.
📌 And despite all that, the stock market is near all-time highs.
If you’re confused, you’re not alone.
So let’s simplify what all this actually means for your portfolio — in plain English.
🔄 1. Recession Risk Is Still on the Table
Yes, the market is up — but under the hood, growth is slowing.
📉 Consumer spending is pulling back.
📉 Credit card debt is at record highs.
📉 Layoffs are rising in white-collar industries.
What this means for you:
If a recession hits, companies with shaky finances or high debt could get crushed. But cash-flow machines like Costco ($COST), Apple ($AAPL), and dividend giants like Verizon ($VZ) tend to hold up better.
💸 2. Inflation Is Sticky — and That Affects Rate Cuts
The Fed wants to cut rates. But inflation isn't going away fast enough. Core CPI (Consumer Price Index) remains stubborn, especially in housing and services.
Why that matters:
When rates stay high:
Growth stocks ($PLTR, $SQ) take longer to rally
Borrowing is more expensive for small businesses
Safer assets like bonds and gold look more attractive
If rate cuts come later than expected, expect short-term pain in tech and real estate. But that also means more time to accumulate strong companies at a discount.
🪖 3. War, Oil, and Global Tension
The Israel–Gaza war is escalating again, with ripple effects throughout the Middle East. If the U.S. steps in more aggressively, we could see:
🛢 Higher oil prices
📈 Spikes in defense stocks
🧊 Strained U.S.–China ties (especially if Iran becomes involved)
Why it matters for stocks:
Energy prices rising = good for oil stocks like $XOM, bad for transportation and consumer companies.
War jitters = volatility. Investors often move into gold, defense ($LMT, $NOC), or cash.
China tensions = risk for companies with global exposure like $TSLA or $AAPL.
🧠 What You Should Do
Now’s not the time to blindly chase hype.
Instead, stick to companies with:
✅ Real earnings
✅ Global relevance
✅ Strong pricing power
✅ Low debt
✅ And long-term demand (AI, clean energy, infrastructure)
📌 Weekly Watchlist — June 15, 2025
Here are 5 stocks worth watching this week:
Ticker | Name | Why It’s Interesting |
---|---|---|
$DUOL | Duolingo | Pullback in growth, but still best-in-class brand. |
$KR | Kroger | Defensive grocery play |
$PLTR | Palantir | AI + defense + gov contracts — still underrated. |
$NOC | Northrop Grumman | Defense stock with upside if Middle East escalates. |
$AMD | Advanced Micro Devices | Strong bounce off support, plays both AI and chips. |
Final Thought:
You don’t need to react to every headline — but you do need to understand how the world shapes the market. That’s how you stay calm, and keep growing, even in chaos.
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DISCLAIMER:
1. Count determined as number of unique email addresses in StartEngine’s database as of 03-07-2025. One individual may have more than one email address. Note that in In May 2023, StartEngine acquired assets of SeedInvest, including email lists for SeedInvest’s users, investors, and founders.
2. The underlying companies held by StartEngine Private Funds LLC, and StartEngine Private LLC (together, “StartEngine Private”) are not participating or involved in the offering. The availability of company information does not indicate that the company has endorsed, supports or otherwise participates with StartEngine Private or any of its affiliates. StartEngine Crowdfunding LLC purchases shares from current and former employees, early investors, and advisors of the companies and sells the shares to StartEngine Private for each offering. When you make an investment in a company on StartEngine Private, you are purchasing an interest in a series of StartEngine Private Funds LLC or StartEngine Private LLC, each a Delaware limited liability company (together the “Series LLCs”), which were created to hold shares of privately held companies. An investor will not directly own or hold shares of the private company but instead will own member interests in a series of the Series LLCs, which either directly or indirectly, will hold shares in the company. There may not be a one-to-one economic parity on the value of the Series LLCs interests and the underlying shares.
3. Based on our 2024 Form 10-K. This revenue growth has been driven by StartEngine Private, a new product line that offers funds in late stage companies. This product line has driven over $28 million of the $48 million in revenue from 2024. Net loss also increased to $16.5 million. To understand the impact on margins, see financials.
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