81% of Americans predicting a recession
CHATTANOOGA, Tennessee (WDEF)- With the stock market down over the past few months, more than 80 percent of Americans think a recession is coming. A recession is two straight quarters of gross domestic product loss. The value of goods and services in our country declined 1.4% in the first quarter.
“If things continue the way they’re going right now we will probably have the second quarter be negative. So, technically, we will be in a recession but that doesn’t mean that everything is going bad. When the government is trying to squeeze the economy down, don’t be shocked when it shrinks and goes negative, and then by definition, you’re in a recession,” said John Vandergriff with Blue Ridge Wealth Planners.
Inflation remains at a 40 year high, the housing market is slowing, and at the end of March, it became riskier to have short-term bonds compared to long-term bonds, a phenomenon historically followed by a recession.
“The short-term debt pays more than the long-term debt. This means people feel better about short-term borrowing the money and the long-term kind of economic situation that we’re in,” said Vandergriff
While 81% of Americans are worried about an impending recession, 40% of economists think a recession is coming within the next two years.
“The economists, or people who are actually watching the data here, so it’s not public perception is reality,” said Vandergriff
In preparing for a recession, you should Diversify Your Investments, Eliminate High-Interest Debt, Have Emergency Savings of 3 to 6 months and Remain Calm.
“This is a part of life. You may feel like I’ve gotta get out before it gets bad but the problem with that is you gotta be right twice. Getting out at the right time and getting back in and very few people historically have ever done that. If you don’t feel good about where you’re at, typically it’s because you have not talked to somebody,” said Vandergriff