Money Matters: Are we headed for a recession?
COLUMBIA, S.C. (WIS) -With everything that’s going on right now are we in a recession?
We never really know until after the fact whether we are or were in a recession. With that being said, there are a lot of warning signs right now that we didn’t see last year.
Whether that’s the big drop in the market, rising inflation, rising interest rates, there are a lot of concerns.
That said, we still have a very strong job market and usually loss of jobs is a big indicator of a recession as well.
If we are in a recession, how long could that last?
Some of the worst recessions have lasted upwards of two years. Most however last only six to 12 months. This means that if we are in a recession now, we may already be halfway through it.
What can we do to prepare?
Solidify your base. That’s making sure your job is on a really good, strong footing. Pay down debt, build up short term savings as well as still contributing to your investment accounts.
Typically, once we know that we’re in a recession stocks do extremely well over the next 12 months.
The last thing is to avoid big ticket or high risk investments at this time.
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