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Is There a Recession on the Way?

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Monday, June 20, 2022

The world has taken a battering over the last few years. The covid pandemic ran riot and devastated businesses. Countries racked up debt around the world and ordinary people had to dip into any savings to get by. Now that the world has started back up and things are moving, we have been struck by a war in Ukraine driving global oil and gas prices through the roof. Interest rates are rising and the cost of living crisis due to high inflation is hitting folks in the pocketbook. 

This has caused experts to start talking about the warning signs of a potential economic downturn. The Wall Street Journal reported that a year ago just 13 percent of economists believed there would be a recession. This year after surveying economists they reported that a whopping 28 percent of them are now predicting the American economy will fall into a recession sometime in the next year. 

They aren’t the only ones predicting a recession either. Deutsche Bank said in a report to clients that a "major recession" is coming to the U.S. economy and CNN reported that the "coming recession will be worse than expected.” Reuters released research that found one in four economists believe the U.S. will experience a recession this year. They say that that number will rise to a startling 40 percent over the next two years. 

Worrying about your finances can take up a lot of energy. If you are worried about your retirement or your financial security in the future, the fact that so many experts are saying that we should expect a recession will cause more worry and perhaps even panic. 

 Scott Ente, Senior Vice President, Investments for David Lerner Associates said, “The one thing you absolutely should not do is panic. Get advice from a trusted and reputable financial advisor. Cutting corners by not contributing to your 401(k) or retirement accounts is not a good idea. Avoid taking out cash early to pay bills, or you could face pricey penalties. Don’t rush into something because you are afraid of what the future holds. Planning carefully with the sensible middle ground of investing is the way to go. “

Everyone has a unique financial situation. However, a recession will affect everyone. Folks should feel empowered to take control of their own lives and financial freedom. Action and confront rather than inaction and fear is a better way to deal with a looming recession.

 

 

 

IMPORTANT DISCLOSURES

Material contained in this article is provided for information purposes only and is not intended to be used in connection with the evaluation of any investments offered by David Lerner Associates, Inc. This material does not constitute an offer or recommendation to buy or sell securities and should not be considered in connection with the purchase or sale of securities.

To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. 

Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances.

These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable-- we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.

David Lerner Associates does not provide tax or legal advice. The information presented here is not specific to any individual's personal circumstances. Member FINRA & SIPC

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Founded in 1976, David Lerner Associates is a privately-held broker/dealer with headquarters in Syosset, New York and branch offices in Westport, CT; Boca Raton, FL; Lawrenceville, NJ; and White Plains, NY. For more information contact David Lerner Associates Call 800-367-3000 Visit our website: www.davidlerner.com

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