Secret Recession Indicator Points to a Massive Stock Market Rebound
Everyone’s talking about the U.S. economy falling into a recession. But believe it or not, it may already be in one. And oddly enough, that may be the best reason ever to buy stocks today. Follow me here… A recession is technically defined as back-to-back quarters of negative GDP growth. First-quarter GDP was negative. Sure, it was negative due to an odd trade imbalance. But it was still negative. The Atlanta Fed’s real-time GDPNow model is forecasting for second-quarter GDP to fall 1.2%. That would mark two consecutive quarters of negative GDP growth for the U.S. economy. If true, then the U.S. economy technically entered a recession back in January. Spooky, yes. But for investors, that realization actually screams opportunity. Wall Street is at a point in this selloff cycle where, historically, the recession is already priced in. Typically, what comes next is a big stock rally where the entire market tends to roar 15- to 25%. So, forget all the recession talk. That will scare the average investor.
Secret Recession Indicator Points to a Massive Stock Market Rebound
Everyone’s talking about the U.S. economy falling into a recession. But believe it or not, it may already be in one. And oddly enough, that may be the best reason ever to buy stocks today. Follow me here… A recession is technically defined as back-to-back quarters of negative GDP growth. First-quarter GDP was negative. Sure, it was negative due to an odd trade imbalance. But it was still negative. The Atlanta Fed’s real-time GDPNow model is forecasting for second-quarter GDP to fall 1.2%. That would mark two consecutive quarters of negative GDP growth for the U.S. economy. If true, then the U.S. economy technically entered a recession back in January. Spooky, yes. But for investors, that realization actually screams opportunity. Wall Street is at a point in this selloff cycle where, historically, the recession is already priced in. Typically, what comes next is a big stock rally where the entire market tends to roar 15- to 25%. So, forget all the recession talk. That will scare the average investor.