Jun 9, 2022
The famous Elon Musk has recently predicted a recession and we often hear this worry from clients as well. It’s a big question being discussed with the down markets and high inflation. Are we entering a recession? On today’s episode, we’ll explore what it means if we are at the beginning of a recession and how well we are prepared for this possibility.
The net worth of American households has actually gone up in the past few years. If we are entering a recession, this increase in net worth will act as a bigger cushion for a lot of American families. This is especially true with the historically low debt Americans have. This savings boom has been unprecedented.
Businesses are also in a stronger place than they were at the beginning of the pandemic and we are currently seeing higher profit margins. This is important if we are entering a recession, stronger profits lead to fewer layoffs and spending cuts.
All of these factors are putting the American people in a stronger position than they were at the start of the 2008 financial crisis. As the year progresses, we’ll be able to see for sure whether this is a recession, but either way, it seems we are in a strong position to weather the storm.
Check out the full episode or use the timestamps below to hear a specific segment.
Check out the full episode or use the timestamps below to hear a specific segment.
1:47 – Enjoying Starwars
3:37 – Elon Musk’s predictions
5:21 – Where are we as a society
8:39 - Business is strong
9:18 – In a better place than 2008
10:14 – The Feds impact on the market
11:28 – Recessions have shorter durations
14:11 – Mailbag: “Should I wait to retire until I’m eligible for Medicare?”
16:46 – Mailbag: “Can I start giving my children their inheritance now?”
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