Crash-Yes. Recession-Not yet. We are seeing a big crash due to the coronavirus effecting our economy. The Dow Jones has fallen by a third since it reached an 11 year high and all-time peak in February of 2020. A stock market crash and a recession are not the same thing. The stock market crashes when investors lose confidence in the future of the businesses they’re invested in and decide to sell their shares to keep from “losing more money.” A recession happens when there’s an economic downturn for two consecutive quarters (six months).7 The gross domestic product (GDP)—an overall measure of how much wealth we’re producing as a country—needs to decline for six months before we can categorize this time period as a recession. We just experienced quarter one. Of course, a market crash can absolutely trigger a recession. But no one can predict the future. Many factors—including the government’s intervention, how long we’ll be dealing with widespread COVID-19 cases, and consumer confidence—will prove whether we’ll bounce back quickly or if we need to prepare for a recession.
Refuse to panic
follow the proven long term plan
call your advisor and just talk
be a champion for others around youIf you are saving monthly….you are an investing genius! During these “downer” months you are buying so many more shares and accumulating wealth. And you probably didn’t even know it… (feel free to share and forward)
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