Jun 9, 2022

The famous Elon Musk has recently predicted a recession and we often hear this worry from clients as well. It’s a big question being discussed with the down markets and high inflation. Are we entering a recession? On today’s episode, we’ll explore what it means if we are at the beginning of a recession and how well we are prepared for this possibility. 

The net worth of American households has actually gone up in the past few years. If we are entering a recession, this increase in net worth will act as a bigger cushion for a lot of American families. This is especially true with the historically low debt Americans have. This savings boom has been unprecedented.

Businesses are also in a stronger place than they were at the beginning of the pandemic and we are currently seeing higher profit margins. This is important if we are entering a recession, stronger profits lead to fewer layoffs and spending cuts.  

All of these factors are putting the American people in a stronger position than they were at the start of the 2008 financial crisis. As the year progresses, we’ll be able to see for sure whether this is a recession, but either way, it seems we are in a strong position to weather the storm.

Check out the full episode or use the timestamps below to hear a specific segment.

Check out the full episode or use the timestamps below to hear a specific segment.

1:47 – Enjoying Starwars

3:37 – Elon Musk’s predictions

5:21 – Where are we as a society

8:39 - Business is strong

9:18 – In a better place than 2008

10:14 – The Feds impact on the market

11:28 – Recessions have shorter durations

14:11 – Mailbag: “Should I wait to retire until I’m eligible for Medicare?”

16:46 – Mailbag: “Can I start giving my children their inheritance now?”

For more, visit us online at http://flemingfinancialservices.com