Blog · Planning
What's Next? Recovery or Recession?
If you’re keeping tabs on the economy, you might be wondering how likely it is that we’ll see a recession this year. Well, many folks out there are saying that a recession in 2023 is pretty much inevitable.
One of the biggest signs pointing towards a recession is something called the inverted yield curve. We had one of those at the end of October 2022, and there was another back in March 2019. On top of that, the massive stimulus relief effort in 2020 is starting to come back and bite us. The Federal Reserve’s balance sheet went from $3.8 trillion in early 2020 to a whopping $7.1 trillion by the end of 2022, which shot prices up like crazy.
And that’s not all! We’ve also been dealing with the highest interest rates in fifteen years, a credit slump thanks to a recent banking collapse, and even some layoffs in the financial and tech sectors. It seems like more trouble is heading our way.
When it comes to spotting a recession, the employment numbers are key. Right now, there are slightly fewer unemployed Americans compared to this time last year, but not by much. It’s likely that things will change in the next few months, and a recession will be underway.
The recession alarm bells are ringing. We’re keeping a close eye on the economy as we move forward, and we’re here to help you get your finances ready for any rocky times ahead. So go ahead and schedule a free appointment with me to make sure you’re recession-ready. I’m excited to lend a hand!
Let’s meet over zoom or in person…