When is the Next Recession?
Rodney D. Falconer
Senior Wealth Advisor, Smith Falconer Financial Group, Wood Gundy, CIBC Private Wealth
Over the last few months, the theme of our discussions with clients has shifted away from Trump towards new headlines, "When is the next recession?" More and more we are hearing that a recession is coming to North America. Recession is a word that seems to heighten investors level of concern and impulse to react. These reactions are not always productive or in line with long-term goals. While Smith Falconer Financial Group cannot pinpoint when the next recession will arrive, we acknowledge that it is a normal part of the economic cycle. Like anything in life, it is important to be prepared and to be proactive rather than reactive.
This month we are sharing a clear and informative article titled, Guide to recessions: when is the next recession and how should you prepare for it? This fact-based, historic overview is assembled by Capital Group, home of American Funds, who have been through many economic cycles over 85 years.
On page 4, the article shows how equities have performed in previous recessions. On page 5 is a list of the five most consistent economic indicators to watch for and what investors should do to prepare for a recession.
The notion of a global slow down and portfolio management throughout are not new to us.