Are we in a recession?

The S&P 500 (even with yesterday’s huge bump) is still down about 12%
from the early July highs.

But… let’s back up. What is a recession? Is it characterized by a drop
in the stock market? Should it be?

If a bunch of wealthy corporations get wealthier, and a your 401(k)
account gets a bump, does that mean we’re NOT in a recession?

I’ll give you two definitions of a recession that I think will help clear
up any confusion.

Some of you might be thinking, “wait, doesn’t the Federal Government have
an official definition of recession?”

Yes – they do. The government defines a recession as two consecutive
quarters of negative GDP growth. And that’s helpful if you’re a pencil
pusher in the Bureau of Labor and Statistics, but it’s probably not very
informative or useful if you’re an average American. GDP can be
fudged.

Published by Wyatt Investment Research at