The US economy has seen a couple of recessions over the past two decades. The most brutal one being the great recession, which remains an anomalous event. Fast forward twelve or so years, and we entered into the 2020 recession, one of the fastest recessions ever recorded that resulted in a massive run-up of stock, crypto, and real estate prices. Now, as a recession looms on the horizon, Americans are struggling to figure out whether or not we’re about to hit a short-term speed bump or a long-term depression.
So many different economists, newscasters, and financial bloggers love to debate whether or not we’re truly in a recession. By definition, we should be, but the experts are slowly taking their time, trying to calculate the true impact of this latest economic cycle we’ve entered. But does being in a recession really matter? Yes, recessions affect almost every aspect of financial life. Labor slows down, consumer prices go up while asset prices drop, and it’s harder to make economic progress. But, is that what we’re experiencing in 2022, or is the term “recession” just propping up fabricated fear that matters far less than we think?
In this bonus episode of On The Market, Dave gives his insight into whether or not the US economy has entered a recession, how this affects real estate investors, and why experts can’t agree on a definition. If you’re actively investing, Dave gives some good advice on how to keep your head screwed on straight while every news outlet plays chicken little.
In This Episode We Cover
Why experts can’t agree on whether or not we’ve entered a recession
GDP decline and how inflation has outpaced our growth as an economy
How past recessions compare to what we’re going through today and what we can learn from them
Mortgage and interest rates and how a further economic decline could affect investors
The three most important metrics to watch as a recession becomes more likely
The key performance indicators that show economic growth, not decline
And So Much More!
Links from the Show
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On The Market 14 with Logan Mohtashami
On The Market 17 with Rick Sharga
Our Recent Panel Discussion on Home Prices
U.S. GDP Shrinks By 0.9%—White House and Experts Push Back On Recession Claims
Check the full show notes here: https://www.biggerpockets.com/blog/on-the-market-23
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