Is There Going to Be a 2020 Recession? What it Means for Public Investors
No one knows the future and no one can say with certainty when the next recession will be.
Of course, there is always the chance of a 2020 recession, but how can we know for sure how likely it is that it could happen?
You may hear about a prophecy in the news or may hear a colleague talk about their own guesses, but how can you make your own educated guess without doing the research? The answer is that you cannot.
Keep reading to find out more about the chances of a recession hitting our country in 2020.
The History to Consider
We are always told to remember history so that we do not repeat it.
In many cases, there are clear signs that a recession may be coming due to the same things happening before previous recessions began.
For instance, anxious investors will start to ask for more long-term bonds and less short-term bonds. Usually the yield for a short-term bond is less than a long-term bond, but sometimes the rates may flip. This is called a yield curve inversion and is generally a sign of a looming recession.
Another indicator may be that wages are going up. This sounds like a good thing though, right?
In reality, when wages go up, businesses start to lose money and are able to fewer less people. This leads to more unemployment, loss of income for businesses, and a lack of sustainability.
Lastly, when people stop buying houses, construction workers stop finding jobs, and businesses are unable to keep going. These are all signs that something is wrong. Remember to take a look at the big picture and if you don’t know what it looks like, this may mean that the future is very uncertain financially.
2020 Recession: How Likely Is It?
According to some, the recession is imminent. Others believe it is a possibility, but it may not happen. It depends on which facts you are looking at.
For example, many experts are guessing that a recession is very likely. These are people from all across the country in different areas that have done independent research.
These are individuals that are using the information they have gathered, along with their own personal knowledge and expertise, to make these assumptions.
Some believe a recession may occur in the year 2019 versus the year 2020. They think it won’t happen in 2020, but is actually going to begin the later months of 2019.
Another example is experts that are guessing the recession will hit, but not until after 2021. They also have their own independent research and opinions that make sense.
Things for Investors to Consider
As you can see, there is no one complete answer to the question. A recession is possible in 2020, but it may not happen.
Truthfully, a big part of whether or not the recession hits is how nervous businesses and investors get, but also whether or not they act on those nerves.
Make smart decisions, recession or no recession, and you will be able to come out on top. Consider stock loans if necessary and think about how they may be able to help you in the event of a recession
Handling the Future
Regardless of whatever does happen, the future is coming. If a 2020 recession does occur, you want to make sure that you are ready.
Start by doing the research now and knowing what you need for your own financial future.
If you would like to get in touch with a specialist to discuss your financial options and the possibilities of a loan in the future, feel free to contact us. We would love to help you secure what you need.