Will We Be Able To Fight The Next Recession?

Will We Be Able To Fight The Next Recession?

Posted On February 1, 2019 4:32 am

With record deficits and a bloated Fed balance sheet, there is real concern about what our government can do to fight the next recession. Since one appears to be getting closer here’s what investors need to know about what DC can and can’t do when the next downturn hits.


  • Thanks to historically low interest rates and a sky-high budget deficit many worry that the Fed and Federal Government won’t be able to fight the next recession.
  • It’s true that rates being cut by half their usual amount, and a paltry likely future fiscal stimulus won’t be able to pack much growth boosting oomph.
  • However, the next recession is likely to be a typically mild one, and thus even “pushing on a string” should be able to end it within 15 to 18 months.
  • The current risk of a recession are very low and one is not likely to begin this year.
  • The most likely start date for the next recession is 25 months, with a bear market most likely to begin in about 17 months. Thus, there is no reason to become extra defensive right now.

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Photo: “Wall Street” by Alex E. Proimos is licensed under CC BY-NC

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Dividend Sensei
Dividend Sensei

I'm an Army veteran and former energy dividend writer for The Motley Fool. I currently write for both Seeking Alpha, Simply Safe Dividends, and DividendSensei.com My goal is to help all people learn how to harness the awesome power of dividend growth investing to achieve their financial dreams, and enrich their lives. With 22 years of investing experience, I've learned what works and more importantly, what doesn't, when it comes to building long-term wealth and income streams. I'm currently on an epic quest to build a broadly diversified, high-quality, high-yield dividend growth portfolio that: 1. Pays a 5% yield 2. Offers 7% annual dividend growth 3. Pays dividends AT LEAST on a weekly, but preferably, daily basis

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