Recession on the Horizon?
May 4, 2023
If you keep an eye on the economy, you may be wondering how likely a recession is to hit this year. According to many, a recession in 2023 is now inevitable.
One of the best indicators of an impending recession is the inverted yield curve, and the most recent one occurred at the end of October 2022, following another inverted yield curve in March 2019. On top of that, the massive stimulus relief effort of 2020 finally came back to haunt us. We saw an unprecedented increase in the Federal Reserve’s balance sheet from 3.8% trillion in early 2020 to $7.1 trillion by the end of 2022, skyrocketing prices even further.
Additionally, we have experienced the highest interest rates in a decade and a half, a credit slump caused by the recent banking collapse, and the beginnings of layoffs in the financial sector and tech industry. And it looks like more is heading our way.
The data on employment will be what locks in any pending recession. Currently, there are fewer unemployed Americans than this time last year, but not by much. It is likely this will change in the coming months and that a recession will have begun.
The recession alarm bells are starting to go off. We are keeping a watchful eye on the state of the economy as we enter the next few months and are here to help you prepare your portfolio for any economic instability.
Contact us today to schedule your complimentary consultation and get recession ready!
We look forward to helping you!
Sources
A recession in 2023 is now inevitable. Layoffs in tech and finance will spread to other sectors | Fortune
Investors, Beware: Some US Recession Alarms Are Already Ringing – Bloomberg
Stocks Could Tumble 15% or More Even With a Mild Recession: JPMorgan (businessinsider.com)