What Does a Rolling Recession Mean for Your Retirement? SHP Financial

What Is A Rolling Recession?

You may have noticed that the economy after the pandemic has been very up and down. And while there has been talk of a possible recession for a few years now, we have yet to completely enter a recession. A recession is traditionally defined as a consistent, widespread downturn in the economy. [1] And although there have been major market downturns recently, there have also been major rallies.

Instead of qualifying our current economic situation as a recession, experts have been using the term “rolling recession.” The term means that instead of a widespread decline in economic activity affecting the entire country, certain industries or regions experience a downturn while others continue to grow. [2]

For example, a rolling recession might occur if California experiences a decline in the tech and housing market while Florida experiences growth in the energy sector. The decline in the housing market would cause a contraction in economic activity in California, while the growth in the energy sector in Florida would help support overall economic growth in the country.

Currently, certain economic indicators look strong: inflation is looking like it might slow down, and the Gross Domestic Product is doing better than expected. [3] But other areas have slowed down or are seeing downturns. Consumers are still feeling the effects of the sudden increase in inflation, and you may have noticed inflation making its way into your life. And industries such as housing and manufacturing are struggling.[4] This is why many experts are calling our current situation a rolling recession.

What Does Rolling Recession Mean For You?

In general, experts recommend being careful with your finances. Rolling recessions are difficult to track, and there is uncertainty about if a rolling recession will turn into an actual recession. So careful spending and careful saving are likely going to be good strategies until the country reaches more solid economic ground.[5]

Understanding the connection between a rolling recession and your investing and saving plan can be key to the financial health of your retirement. If you have questions about how the current state of the economy will affect your retirement, please reach out to us for a complimentary review of your finances.

 


The content presented is for informational purposes only and is not intended as offering financial, tax, or legal advice, and should not be considered a solicitation for the purchase or sale of any security. Some of the informational content presented was prepared and provided by Lone Beacon Media, LLC dba Lone Beacon, while other content presented may be from outside sources believed to be providing accurate information. Regardless of source no representations or warranties as to the completeness or accuracy of any information presented is implied. Lone Beacon Media, LLC is not affiliated with the Advisor, Advisor’s RIA, Broker-Dealer, or any state or SEC registered investment advisory firm. Before making any decisions you should consult a tax or legal professional to discuss your personal situation.

Investment Advisory Services are offered through SHP Wealth Management LLC., an SEC registered investment advisor. Insurance sales are offered through SHP Financial, LLC. These are separate entities, Matthew Chapman Peck, CFP®, CIMA®, Derek Louis Gregoire, and Keith Winslow Ellis Jr. are independent licensed insurance agents, and Owners/Partners of an insurance agency, SHP Financial, LLC.. In addition, other supervised persons of SHP Wealth Management, LLC. are independent licensed insurance agents of SHP Financial, LLC. No statements made shall constitute tax, legal or accounting advice. You should consult your own legal or tax professional before investing. Both SHP Wealth Management, LLC. and SHP Financial, LLC. will offer clients advice and/or products from each entity. No client is under any obligation to purchase any insurance product.

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2023-03-20T10:25:33-04:00