Mitch Preciado August 23rd, 2019 Is there a Recession Coming... All things nothing, something, and Real Estate... #27
First of all, what exactly is a recession and how do we know when we are in one? Think about a balloon expanding (economy) as you continue to blow air into it. Our economy has been expanding since June 2009 for 122 consecutive months. There have been 33 recessions since 1854 in the United States. At some point this expansion must end. The question is when will the contraction begin..
Even though a recession is a normal part of the business cycle, it can be an unpleasant time in our lives. With a slowdown in growth sometimes comes higher unemployment, stock market decline, social and political distress, uncertainty, etc. Specifically two consecutive quarters of falling GDP signals the start of a recession, although other factors may contribute as well.
How long will the recession last and what should I do. Since the average recession lasts approximately 10 months what things should be in place should we enter one. Stay relevant at work, control your expenses, build cash reserves. Speak to your financial advisor about possibly balancing your porfolio. Get ready for the next expansion!
Real Estate News... Is it time to buy?
Lately all one has to do is turn on the news and the buzzword is recession. The indicators are signaling a pending recession. Question then becomes what do I do? Typically money leaves the stock market arena and moves to 'safer' investments. Over the last 25 years, with the exception of the 2008 mortgage crisis, Real Estate has shown steady appreciation even during recessionary periods. If you are ready to buy your first or next home contact me [email protected]