Published on 22 Mar 2023 on Zacks via Yahoo Finance

Fearing a US Recession? 5 ETF Areas to Protect Your Portfolio

By now, we all know that the U.S. economy is going through a crisis triggered by its regional banking sector that started in early March. The failures of Silicon Valley Bank and Signature Bank were the epicenter of the crisis, which hit the entire space hard.

Economists at Goldman Sachs increased their probability of the U.S. economy falling into recession in the next 12 months by 10 percentage points from 25% to 35% due to the regional banking distress, the latest client note showed, as quoted on Fxstreet.com.

Irrespective of the crisis, the U.S. economy had a chance of facing a soft landing this year due to rapid Fed rate hikes in the past year. International Monetary Fund projected in February that the U.S. economy will likely slow this year and a soft landing is expected. A recession can possibly be dodged by a slight margin though higher rates are likely to impede growth.