5 Ways to Prepare for a Recession
by Daniel Demian, CFA Level 3 Candidate
Jun 28, 2022
2 minutes
On paper, a recession is a fall in GDP for two consecutive quarters. Unfortunately, the actual GDP report lags the quarter-end by at least a month and is constantly revised as new data is evaluated, making it hard to confirm a recession before the fact.
However, that doesn’t mean there, markets tend to pull back, and the stock market may even fall into (when stock prices fall 20% or more from recent highs). Businesses may cut hours, lay off employees or freeze hiring to stay afloat. Also, as consumer demand decreases, companies tend to have a hard time selling their inventory. So products that were once in demand and “out of stock” may become available.
You’re reading a preview, subscribe to read more.
Start your free 30 days