Why a 2022 Recession Would Be Unlike Any Other | WSJ

Is the U.S. in a recession? Many economists think that’s a possibility and by some measurements, it may have already started. But why aren’t people losing their jobs?

Recessions usually come with a dip in economic output and a rise in unemployment. Right now, economic output is falling. But so is unemployment. WSJ’s Jon Hilsenrath has coined it a “jobful downturn.” We look at past recessions and indicators to explain how a recession in 2020 could be very different.

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#Recession #Economy #WSJ

[raynoldgrey]

My main concern is how to survive all of these financial and political crisis, especially in light of the US political power struggle.

[DonaldMark-nese]

I suggest you offset your real estate and get into stocks, A recession as bad it can be, provides good buying opportunities in the markets if you’re careful and it can also create volatility giving great short time buy and sell opportunities too. This is not financial advise but get buying, cash isn’t king at all in this time!

[benjamindavidson]

I foresee a recession lasting 2-3 years, and if inflation continues to surge, the Federal Reserve will likely raise interest rates soon. Inflation is causing various issues worldwide, such as food shortages, scarcities of diesel and heating fuel, and significant spikes in housing prices, leading to a potential financial market crash. This global downturn could have long-lasting repercussions. Given the current inflation rate of approximately 9%, my main worry is how to optimize my savings and retirement fund, which has remained stagnant at around $300, 000, yielding almost no gains for quite some time.

[leondonald]

In light of the impending recession and the fact that inflation is still far higher than the Fed's 2% target, several of the most prominent market analysts have been expressing their views on how terrible they believe the next downturn will be and how far stocks may have to fall. I need advice on what investments to make because I'm attempting to create a portfolio for my children that will at least be $850k in value.

[oneiljerry]

Recessions are part of the economic cycle, all you can do is make sure you're prepared and plan accordingly. I graduated into a recession (2009). My 1st job after college was aerial acrobat on cruise ships. Today I'm a VP at a global company, own 3 rental properties, invest in stocks and biz, built my own business, and have my net worth increase by $500k in the last 4 years.

[elvismark]

In light of the present situation, I think I should view a video on "How to survive the current recession." It's a total failure, in fact. I was amazed that some folks were still able to make more than $409k in a short period of time. If that's still the case, could you clarify how?

[larryronhartfield]

The price of momentum stocks has fallen. Some, in my opinion, have nearly reached their bottoms, while others, like Tesla, are still declining in search of one. Today's market is one for stock pickers; something always rises when markets fall. Trade those or purchase some momentum stocks that have fallen in value but will eventually rise again. When? The fact is that consumer spending suffers since the majority of income flows to those who do not need it. I still have $600K lying around, so any professional advice—like the one I currently have—would be very useful.

[MiikeFaber]

My portfolio has been dwindling despite the S&P 500 doing well. It's frustrating. About 30% of my $580K portfolio has been lost in 4 months. How do I turn this around?

[amirmoradi]

More jobs does not mean better standard of living.

More people may be employed, but they have to work twice as long and hard to keep the same standard of living from 20-30 years ago

[Billhatestheinternet]

Profits are up, wages are down. There is a lot wrong with that situation.

[Waywind]

Pretty bleak that it takes 3-4 years of studying (and about $40, 000-60, 000) in student debt just to be *qualified* for a job that at most will allow you to save $30, 000 a year, and somehow you're suppose to be able to buy a $500, 000 house in time to raise a family before you're too old for kids🤔

Systems broken, collapse is imminent.

[margaritasbunny]

I am aware that continuing to invest during periods of volatility can be a smart way to build wealth. I’ve heard testimonies of people accruing over $250k in this red period. What measures can I take to achieve this?

[alluringgrace]

I'm sure most of those jobs which are having trouble getting workers are low paying, stressful jobs that no one wants

[DampFijiWater]

If the cost of living continues to outpace the increases in wages/salaries, a recession is pretty much bound to happen. I know here in Canada, the $8 minimum wage we had in the 1990s had more purchasing power than the $15 wage we have today... it's crazy.

[pat]

I had to quit two jobs in the past year because I was not making nearly enough money to cover my expenses. Those jobs remain empty because their wages do not reflect the cost of living.

[stephenpotter]

What has always scared me the most about the inflation is that we might go into a very bad recession, and that would greatly affect the market. I have been able to accrue up to $293k, and I'm worried about a possible wipe-out from the inflation. I read of someone who's been making more than $23k every month despite this recession. Can I pull that off too as a novice?

[Tessitura]

Businesses: "Omg, we can't find workers"
Also Businesses: Record profits but won't raise pay.

[TheLazyCritic]

I keep hearing “People don’t want to work anymore” but the reality is that people don’t want to work for a company that requires mandatory overtime, no benefits, no 401k, no PTO, no maternity leave, unsafe working environment with a boss who berates you… all for $15 an hour

Not going to happen, when there are quality jobs out there who offer a living wage + benefits + PTO + a safe working environment

[bsetdays]

Market is down still, I've been looking up strategies and apparently both bull and bear market condition provides equal avenue to accrue massive gains, and a news article particularly mentioned a 54 year old that made $180k in 5weeks, how do I learn these strategies, my portfolio has been stagnant for months.

[elisafergurson]

Inflation is killing my budget and my salary. I can't invest in the financial market anymore and it seems like I will need to sell all of my risk assets to keep my head above the water this year