Economic recessions are a period of temporary economic decline when global trade and industrial activity are reduced. Recessions are recognized when there is a fall in GDP in two successive quarters. There have been 47 recessions within the U.S since the Articles of Confederation, and only 13 since the great depression.
Recession is a normal part of a business cycle, as it takes the excess goods out of the economy while balancing the economic growth. Recessions are also a great opportunity to purchase assets because they are usually cheap during hard economic times.
Since the last Recession, the S&P 500 is up over 250%. Overall, recessions aren’t as bad as people make them sound, they can create great opportunities for investors to purchase assets, and they also change consumer behavior in a positive way.
Categories: Financial Information