If you have a retirement plan, are an individual investor, or just pay attention to market activity, you probably have heard the word “recession” pop up more lately. Just as a reminder, a recession is loosely defined as a significant and far-reaching downturn in economic activity that typically lasts longer than a few months. There are specific measurements to tell us when we are in a recession, and the U.S. is not in one now.
However, some economic indicators that can predict recessions are beginning to flash warning signs. If you are invested in the market, it’s worth looking at your portfolio and making sure you are positioned appropriately for your specific risk tolerance.