Photo (cc) by Verbatim Multimedia
It’s been nearly six years since the Great Recession officially ended. Is it time to start worrying about the next one? Here’s this week’s question:
I keep hearing about the next recession is on its way and will make the last one, from 2008, look like a walk in the park. Truth?
Before I answer Lynn’s question, here’s a video I did last year. It’s called “Things Beginning Investors Don’t Know But Should.”
Recession on the way? Bet on it
I’ve been interviewed on both TV and radio countless times about the economy and the stock market, most commonly in times of trouble. In fact, my television career began when I was working as a stockbroker and was interviewed multiple times during the days after the infamous Crash of 1987, a cataclysmic economic event that pushed the global economy into recession and the Dow Industrials down 23 percent in a single day. Then there was the bursting of dot-com bubble, when the tech-heavy NASDAQ lost two-thirds of its value between 1999 and 2002. And, of course, our most recent recession, which cut the Dow in half between 2007 and 2009 and was the worst economic downturn since the Great Depression.
While those are some of the downturns we’ve had in the past few decades, they’re hardly the only ones. And that’s the point. Our economy is cyclical; always has been, always will be. So when the question is, “Will we have another recession?” The answer is always “Absolutely.” It’s just a matter of when it will arrive, how severe it will be and, most important, how you’re positioned to take advantage of it.