Current projections show a 55 percent chance of a recession in the second half of 2020. The biggest risks are trade war uncertainty and (a) global slowdown. (Odds of a recession between now and the November 2020 election are) 25 percent. The risk of a recession is increasing.
How to Prepare Yourself for a Recession
YES: Although having recently forecast the economy to slow but not fall into recession in 2020, the coronavirus malaise has already caused the economy to falter. ... It's not inevitable, but increasingly likely that the U.S. will reach the technical definition of a recession (two successive quarters of negative GDP).
Thankfully, there are ways you can prepare for an economic recession:
Economic recessions typically bring low interest rates and create a buyer's market for single-family homes. As long as you're secure about your ability to cover your mortgage payments, a downturn can be an opportune time to buy a home.
Many economists say the U.S. is technically out of a recession, but the economy is a long way from healthy. ... It's abundantly clear the U.S. economy took a big plunge in March and April of 2020. The coronavirus crisis required many parts of the economy to shutter to minimize human contact to slow the virus's spread.
A good investment strategy during a recession is to look for companies that are maintaining strong balance sheets or steady business models despite the economic headwinds. Some examples of these types of companies include utilities, basic consumer goods conglomerates, and defense stocks.
5 Things You Shouldn't Do During a Recession
Some products are known to be recession-proof (or coronavirus-proof), including toilet paper, home goods, and groceries. Essential sectors like healthcare, grocers, household products, and fulfillment logistics are also seeing a rise in demand.
Still, cash remains one of your best investments in a recession. ... If you need to tap your savings for living expenses, a cash account is your best bet. Stocks tend to suffer in a recession, and you don't want to have to sell stocks in a falling market.
The world economy could more than double in size by 2050, far outstripping population growth, due to continued technology-driven productivity improvements. Emerging markets (E7) could grow around twice as fast as advanced economies (G7) on average.
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