What is a “Rolling Recession”?
It is obvious that the economic situation post-pandemic has been unstable. Even though talks of a recession have been going on for some time, our current economic situation hasn’t been officially categorized as a recession. Generally, a recession is described as a long-term, widespread economic decline.[1] In recent times, there have been both major decline and major growth.
Rather than calling what is happening with the economy a recession, experts are referring to it as a “rolling recession.” This implies that, instead of the entire country undergoing economic trouble, only certain regions or sectors are experiencing a slump while the rest are experiencing growth.[2]
For example: If the tech industry on the west coast sees a downturn, it will affect the overall economy to some degree. But at the same time, Florida could see development in the energy industry, which would assist with offsetting the decline in the tech industry. These two events could happen (and do happen) simultaneously in a rolling recession. Some places and industries will struggle, while others will do well.
At present, a few economic signs appear to be very positive: it appears that inflation is likely to slow down, and the Gross Domestic Product is doing better than expected.[2] On the other hand, some areas have slowed down or have had a decline. Consumers are still suffering from the unanticipated inflation rate. You may have become aware of inflation having an effect on your life. Additionally, industries such as residential and manufacturing are encountering struggles. [2] This is why many experts are saying that the current situation is a rolling recession.
Rolling Recession and Your Retirement
The economic environment may be uncertain, and experts advise being prudent with your finances. A rolling recession may turn into an actual recession, so it is recommended to practice careful spending and saving habits until the economy is on more stable footing.[2]
Comprehending the correlation between a rolling recession and your financial resources can be beneficial for your retirement. If you are concerned about the current economy’s impact on your retirement, please contact us for a complimentary review of your finances.
[2] https://www.cnbc.com/2023/01/27/what-is-a-rolling-recession-and-are-we-in-one-experts-explain.html
Because investor situations and objectives vary this information is not intended to indicate suitability for any individual investor.
This is for informational purposes only, does not represent legal or tax advice, does not indicate suitability for any particular investor, and does not constitute an offer to purchase or sell investments.
Statements concerning financial market trends are based on current market conditions, which will fluctuate.
Past performance is not indicative of future results. Forecasts are inherently limited and do not guarantee future results. Advisory Services are offered through Asset Strategy Advisors, LLC (ASA), a SEC Registered Investment Advisor. Securities offered through registered representatives of Concorde Investment Services, LLC. (CIS) or RCX Capital Group, LLC (RCX), both members of FINRA/SIPC. Insurance Services offered through Asset Strategy Financial Group, Inc. (ASFG). ASA, CIS, RCX and ASFG are independent of each other. All research reports from third parties are for informational purposes only.
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