Have You Lived Through a Recession?
Last week we talked about an inverted yield curve and how many commentators believe that leads to recession. This week we’re going to look closer at what typically happens in a recession.
The first thing to remember is that recessions are not uncommon. As mentioned in last week’s post, they happen on average about every 7 years. This graphic show you how many recessions you’ve already lived through depending on your age.
Secondly, recessions are never the same. A lot of us, having lived through the Great Recession, hear the word “recession” and automatically think of how bad that one was. And it’s important to note that the Great Recession was the worst recession since the Great Depression. Prior recessions hurt, but not as much as the one in 2008-2009.
Nobody likes a recession. They hurt in terms of job losses and investment performance. But each time, both the economy and stock market recovered and advanced to new highs.
Is a recession coming?
Maybe. But the real question to ask is “Am I prepared?” Do you have an emergency fund set aside in case of job loss?
Here at Financial Design Studio we continuously monitor your portfolios to make sure they’re in-line with your life goals. These weekly updates and monthly investment newsletters are designed to help you understand what’s going on, so you have confidence to stick to your plan for the long-haul.
Wondering how this affects your investments? Schedule a call with Michelle and Steve to discuss your portfolio today.