GET YOUR FREE STOCK WORTH UP TO $1000 ON PUBLIC & READ MY THOUGHTS ON THE MARKET – USE CODE GRAHAM: http://www.public.com/graham
Trade Bitcoin, Doge, and other crypto with zero fees on FTX. Use my referral code GRAHAM and get up to $100 FOR FREE: https://ftx.us/partners/graham
NEW BANKROLL COFFEE NOW FOR SALE: http://www.bankrollcoffee.com
GET MY WEEKLY EMAIL MARKET RECAP NEWSLETTER: http://grahamstephan.com/newsletter
THE NEW PODCAST: https://www.youtube.com/channel/UCMSYZVlQmyG8_2MkIKzg0kw
The YouTube Creator Academy:
Learn EXACTLY how to get your first 1000 subscribers on YouTube, rank videos on the front page of searches, grow your following, and turn that into another income source: https://the-real-estate-agent-academy.teachable.com/p/the-youtube-creator-academy/?product_id=1010756&coupon_code=100OFF – $100 OFF WITH CODE 100OFF
EXPLAINING THE DECLINING GDP:
One, MOST of the decline was due to a decrease in INVENTORY investment, which – was BOOMING in the final months of 2021. r.
TWO, the economy also saw a decline in spending across the state, federal, and local governments…which, was likely fueled by the decrease of unemployment insurance, child tax credits, and stimulus.
Third, EXPORTS declined by 3.2%…or, in other words…less of OUR OWN goods and services were shipped and sold overseas…which, could LIKLEY be the result of the ongoing Shutdown overseas, along with the international tension.
And Fourth, we also saw an 8.5% decline in DEFENSE SPENDING, which CNBC said, knocked a third of a percentage point off the final GDP.
In terms of how a recession could impact the stock market:
From 1869 to 2018…there have been a total of 16 recessions which had POSITIVE stock market returns….in fact, of those positive recessions…the market went UP an average of 9.8%, during a time the GDP declined by 3%…. or, in other words…out of 30 recessions…HALF had no correlation whatsoever with lower stock values.
To take that a step further, since 1869…one study found that the correlation between GDP growth and stock market returns was nearly ZERO – and, on average, the US stock market peaks SIX MONTHS before the start of a recession.
According to AWealthOfCommonSense Blog…throughout EVERY SINGLE RECESSION SINCE 1945…the stock market has – at SOME POINT – seen a sell off…with the average drawdown coming in at a whopping 29.2%…
HOWEVER…the GOOD NEWS is that, even though there CAN be a rather abrupt sell off…by the time the recession is OVER, the market actually RECOVERS, and has posted an average PROFIT of 1.7%…with, an average gain of 15.3% the following 1 year….meaning, INVESTING DURING A RECESSION is one of the most profitable times to invest. Not to mention, in the 3 years following every single recession we have ever had…the market was 100% in the green.
If anything, Bloomberg notes that a bear market tends to be a better predictor of a recession…rather than a recession being a predictor of a bear market.
Now, that’s not to say that prices can’t go lower, or that – a recession could last way longer than anticipated, or maybe this entire thing is a fluke false alarm…but, based on EVERY other recession in the past…the best course of action is to simply stay invested…and KEEP INVESTING when times are bad…especially if we do see an actual recession.
My ENTIRE Camera and Recording Equipment:
For business or one-on-one real estate investing/real estate agent consulting inquiries, you can reach me at GrahamStephanBusiness@gmail.com
*Some of the links and other products that appear on this video are from companies which Graham Stephan will earn an affiliate commission or referral bonus. Graham Stephan is part of an affiliate network and receives compensation for sending traffic to partner sites. The content in this video is accurate as of the posting date. Some of the offers mentioned may no longer be available. This is not investment advice. Public Offer valid for U.S. residents 18+ and subject to account approval. There may be other fees associated with trading. See Public.com/disclosures/