At the end of last year, the United States economy passed its 100th month of expansion, and it is causing financial experts to believe that a recession is on the way and that the signs may be more prominent than they ever have been.
Some observers think that the 4% unemployment rate and the record-setting stock market indicates that the economy is steadily growing in strength. However, just looking at those two factors means that you are over-looking how cyclical the economy is by nature and that changes happen due to a large number of things.
Economic experts do not want to think about a possible recession coming, but the trends and facts line up to the fact that there could very will be a recession that is in the near future. This is because of some of the ways recessions present themselves: experts are starting to see some of these trends and it is giving them cause enough to be concerned.
One thing that the financial experts are worried about is what this possible recession could mean for people who own homes. People who were around in 2008 no doubt remember what that recession did to the housing market, and there are some lending practices that are going on that these experts think could possibly cause economic turmoil in the near future. Read more: US Money Reserve | Manta and US Money Reserve | Biz Journals
The high levels of debt that are in most households today cause many financial experts to believe that these debt levels could cause economic instability in the future.
Politics could also be a major factor in the cause of a possible recession, and many people think it is because of the government’s hyper-partisan nature. The political climate has changed a lot in the last few years, and experts are no longer sure how well they will be able to respond if an economic downturn did occur in the near future.
If an economic downturn were to happen, and the federal government parties all had different viewpoints on how to address the downturn, then it could take a long time for political parties to figure out how to respond which means more damage could be done than we expect.
So, how do we as individuals and an economy as a whole, prepare for a possible recession on the horizon? It is first and foremost highly important for consumers to start being proactive in making a plan in case the economy does take a turn for the worse.
One way people can start preparing for a possible recession is by beginning to seek out assets that perform well and performed well during the last recession. This means it will hold its value if a recession does hit.
Many economic experts see the potential for a major economic downturn and they urge people to start doing their research and make plans to protect their assets in case this recession does hit in the near future.
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