The Hidden Recession 📉

Table of Contents

The Hidden Recession

As a naturally occurring stage of any economic cycle, recessions have long worried citizens since the industrial age. In recent years, several recessions, such as the Dot-Com bubble of 2001 and the Great Recession of 2008, have had deep impacts on not only the broader economy but millions of Americans’ financial livelihoods. These difficult years could inflict some long-term wariness into any hiccups the economy can have. A recent survey conducted by Nationwide found that out of 2,000 adults, 68% are expecting a recession in the next six months and 80% of those believe it to be as severe as the 2007 to 2009 Financial Crisis. Currently, the rallies of the stock, labor, and consumer markets have continued to push the economy in a battle towards disinflation, with several economic analysts warning the recession expected for the last two years has been further delayed. The current broad consensus seems to show a high chance of it beginning during the fourth quarter of this year or the first quarter of next year.

Although no one truly knows when the next recession will come and how deep it will be, the combination of the Federal Reserve’s actions to tighten rates and companies’ fiscal performances will lead the way to any negative ramifications. With hotter-than-expected labor data releasing last week, investors fear heightened hawkishness by the Federal Reserve could push rates high enough to trigger a recession. Although the Fed continues to reiterate its plan to reach 2% inflation by means of a “soft landing”, the unfamiliar variables spurring from the pandemic or even AI could present themselves as threats for the Fed’s vision. This week, the next batch of economic data will release in the form of the consumer and producer price reports to gauge inflation for the month of June.

Want to learn how to invest? Download the Invstr app, where you can play Fantasy Finance and manage a virtual investment portfolio or open a brokerage account and invest for real. Take our interactive investing course on Invstr Academy and become a better investor today!

I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.

Share:
More Posts
Get your daily Invstr Crunch

Get the market news and updates you need, delivered to your inbox or available on our daily podcast.

Risk Disclosure:

Invstr is not a bank and banking services are provided by Vast Bank, N.A.

Brokerage and Banking services are currently only available to U.S. residents.

Invstr app and web services are provided by Invstr Ltd. Advisory services are provided by Invstr Financial LLC, an investment adviser registered with the Securities Exchange Commission (SEC) details of which can be obtained here. Securities brokerage and custody services are provided by Apex Clearing, a broker dealer registered with the SEC and a member of FINRA and SIPC. There is no bank guarantee on securities and securities may lose value.

Investing involves risk and can lead to losses. Past performance does not guarantee future results.

Invstr app and web services are provided by Invstr Ltd. Invstr+ advisory services are provided by Invstr Financial LLC, an investment adviser registered with the Securities Exchange Commission (SEC). Securities brokerage and custody services are provided by Apex Clearing, a broker dealer registered with the SEC and a member of FINRA and SIPC. There is no bank guarantee on securities and securities may lose value. Vast Bank N.A. a nationally chartered bank and member of the FDIC, provides the banking products, including the products and services related to digital asset accounts. As with any asset, the value of Digital assets can go up or down and there can be a substantial risk that you lose money buying or holding digital assets. You should carefully consider whether trading or holding Digital assets is suitable for you in light of your financial condition. Your digital account does not support wallet to wallet transferring of your digital assets (i.e. cryptocurrencies) outside the platform. Any Digital Assets in your digital asset account are not insured by any government entities, including but not limited to FDIC or SIPC. The Invstr Visa® Debit Card is issued by Vast Bank, N.A. pursuant to a license from Visa U.S.A Inc and may be used everywhere Visa debit cards are accepted. Invstr Ltd, Invstr Financial LLC and Invstr Securities Ltd are subsidiaries of Marketspringpad Holdings (collectively “Invstr”) and Invstr is solely responsible for the application services and website content.

Watchlists provided when users first access the service are not a recommendation to invest. Instead they are provided to help users better navigate the service. Users are free to edit and create their own watchlists. From time to time, Invstr will suggest instruments solely based on an individual’s interest and the interest levels of the Invstr community. The statistical and portfolio builder models generated by Invstr do not reflect actual investment results and are not guarantees of future results. Comments provided by Invstr leaders, influencers or members of the Invstr Community are not recommendations and should not be construed as such. Invstr does not endorse the content or the positions posted by them. Their investment approach, and that of the models provided by Invstr, may be different from yours and may not be appropriate for you.