A "psalm rule" typically refers to the structured way monks or clergy use the 150 Psalms in daily prayer (Divine Office), especially following the Rule of St. Benedict, which dictates reading the entire Psalter weekly, dividing psalms for different hours (Vigils, Compline), and maintaining a consistent, thorough recitation for spiritual discipline. Other traditions, like some Orthodox practices, have variations, such as the Rule of Twelve Psalms, while secular interpretations might refer to economic indicators like the Sahm rule.
Historical accuracy
The Sahm rule is a robust tool that has been very accurate in identifying a downturn in the business cycle and almost always doesn't trigger outside of a recession. The simplicity of the calculation contributes to its reliability.
The Sahm rule is triggered when the three-month moving average of the unemployment rate increases by 0.5 percentage points or more relative to its low in the previous 12 months.
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While there were concerns and predictions for a 2025 recession, some forecasts suggested it might be delayed or avoided, with indicators mixed, but economists remained watchful, with some raising recession odds due to potential impacts from trade policies and fiscal actions, although others saw receding risk as 2026 approached, pointing to slowing growth rather than an outright collapse.
While no one can predict the future, most economists in early 2026 anticipate continued, albeit slower, economic growth for the U.S. in 2026, with risks of a recession elevated but still less likely than a major crash, though some experts warn of potential market corrections or deeper downturns linked to factors like an AI bubble or past policy stimulus. Key themes include a resilient economy driven by consumer spending and AI investment, alongside concerns about inflation, potential tax cut impacts, and high stock market valuations (like the Buffett Indicator).
Bonds and Fixed Income
Millionaires may allocate a portion of their portfolios to bonds and other fixed income instruments. These assets can provide predictable interest payments and help balance risk against more volatile investments like stocks or real estate. Common choices include: Government bonds.
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Here's a look at some of those investments, along with some others that could mitigate the effects of a recession:
The Sahm Rule identifies signals related to the start of a recession when the three-month moving average of the national unemployment rate (U3) rises by 0.50 percentage points or more relative to its low during the previous 12 months.
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Another proposed definition of depression includes two general rules:
1. United States. The United States' GDP is the world's largest, being worth over a quarter of global output in nominal GDP terms. Moreover, it has among the world's highest GDP per capita.
Billionaires, of course, tend to invest in the choicest lots and properties available, meaning they are always coveted, even if they may be only aspirational during uncertain economic times. Real estate, both residential and commercial, can also provide great returns.
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The "7-3-2 Rule" refers to two main concepts: a financial strategy for wealth building, suggesting it takes 7 years for the first major savings milestone, 3 years for the next, and 2 years for the third, driven by compounding and increasing investments; and a trucking rule (7/3 split) allowing drivers to split their 10-hour mandatory break into 7 hours in the sleeper berth and 3 hours of off-duty rest, offering flexibility.
According to a report by PwC, China is expected to become the largest economy in the world by 2030, with a projected GDP exceeding $26 trillion.
1. South Sudan. The youngest country in Africa is also the poorest: Since gaining independence in 2011, South Sudan has faced two periods of civil war, with a current — fragile — peace deal in place. The country is also susceptible to droughts and floods, further setting back progress.
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