Question:
Are we heading for a recession?
Answer:
Definitely.
A recession is coming.
There is a 100% chance that there will be a recession in the future.
Unfortunately, there is almost a 0% chance that anyone can accurately tell you when it’s going to start (or end). Unlike in King Belshazzar’s feast, the economy doesn’t write on walls.
But whether the next recession is this year or in 3 years, is irrelevant; the question is, from an investment perspective, does it really matter?
I’d argue that it does not.
The first 6 months of 2022 may have been the worst half year since the 1970s, but the data reminds us to stay on track.
When expectations are clear and you’ve built a plan to get you through three, four or five decades (or more!), it puts shorter-term events (such as the inevitable ups and downs) into the right perspective.
Do you have any financial questions? Send them over to me at contact@rossnaylor.com and I will feature them in a future post.