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When is the next U.S. recession and how should you prepare for it?

April 15, 2020

When is the next recession?

That’s one of the most frequently asked questions we hear. And for good reason. The coronavirus outbreak has caused disruptions in unprecedented ways, sparking the first bear market in 11 years. Although the full extent of its economic impact will not be known for some time, it's clear that the likelihood of a U.S. recession has increased since
the start of the year.

Recessions can be complicated, misunderstood and sometimes downright scary. But, most of all, they’re hard to predict, as Paul Samuelson — the first American to win the Nobel Prize in Economics — wryly noted in the 1960s. So rather than predicting the exact date of the next recession, this guide will offer perspectives on the following questions:

  • What factors have contributed to previous recessions?
  • How have equities moved during past contractions?
  • What are the most consistent economic indicators to watch?
  • How close is the next recession?
  • What can investors do to prepare?

But let’s start with the most basic question: What is a recession?


To continue reading, please CLICK HERE to download our complimentary Guide To Recessions: 2020 Edition.