Why a 2022 Recession is Highly Likely to Happen | by Tyler | The Capital | May, 2022


Learn about the current state of the US economy

Photo by Andre Taissin on Unsplash

“A recession is a period of declining economic performance across an entire economy that lasts for several months.”

If you pay any attention to the news and economy of the United States, you will most likely have heard about a potential up in coming recession. With a recession, there are only a few things you will need to know (in simple terms):

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  • A recession is bad; a slowed-down economy with less people buying goods, less goods being produced, higher unemployment rates, slow stock market growth…
  • The last recession we experienced was in 2007–2009 (The Great Recession)
  • On average, a recession lasts for roughly 1.5 years.
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With many factors influencing this potential recession, here are a few major noteworthy ones:

  • Inverted Yield Curve
  • Skyrocketing inflation rates + Stopping the money printer
  • GDP down 1.4%
  • Russia and Ukraine
  • Extreme lock-down procedures in major cities in China (Major exporter of the US)

With many major banks and popular analysts calling for an upcoming recession, it is definitely a possible outcome and may be something to watch out for.

Are we going into a recession? The answer is, who knows, there are many factors that can change the outcome of the future and, is not something that anyone can say for certain. However, it is not always a bad idea to prepare for a potential upcoming recession.

What should I do to prepare for a recession?

With a recession, the biggest thing to do is just wait for the economy to turn back around. However, here are a few common “tips” on preparing for a recession:

  • Start an emergency fund
    – Saving about 3–6 months’ worth of monthly expenses
  • Try and eliminate as much debt as possible
  • Try and cut down on “unnecessary” expenses and potentially change your lifestyle
    – A good place to start is checking unused monthly subscriptions where you are still be charged
  • Moving your investments

If you would like to learn more about this potential recession here are some videos I personally have watched and are info packed:

Nothing in this article is financial advice, please always do your own research and take your own time to learn about the topic at hand and determine your future steps.

I hope you were able to takeaways some points from this article, please feel free to message me on Twitter if you have any questions or comments!

Twitter — @TylerResold




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