Hello, August! As we begin a new week and a new month, it seems like each day brings the question, "is it a recession, or isn't it?!" Our Peek of the Week reexamines last week's analysis about economic growth in the United States and how it's slowed for two consecutive quarters. We discuss how the GDP (gross domestic product) is measured and how it's contributing to our current inflation and our potential recession.
Read MoreA lot of people are worried that a recession is in our future. Some believe it may already be here. Our Peek of the Week pumps the brakes on the whole "recession" idea to evaluate the facts, details and future estimations. Unemployment is low, inflation is high, and both tend to occur in an economy going through some strong growth. So, which is it?! Are we experiencing strong growth or going through the early stages of a recession? It's important to remember that the models used to predict these things can be volatile, resulting in questionable or conflicting data.
Read MoreThe stock market has been dropping, but it's important to know the stock market isn't very accurate when it comes to predicting recessions. And it sure seems like that's the word being thrown around these days: recession. The fact is, bear markets in stocks lead to recessions only about 53 percent of the time. In other words, the stock market has about the same predictive value for recessions as a simple coin toss. Let that sink in!
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