Recessions are typically defined as two quarters of negative GDP growth. Currently, the US is experiencing anemic GDP growth, but it has not been negative, as would be indicative of a typical recession. (Thank God for higher Healthcare costs to help stimulate the GDP -see figure 1 )
The recession we are currently experiencing is an earnings recession. An earnings recession is categorized by two negative quarters of earnings growth. Important take away: not all earnings recessions have been preceded or followed by an economic recession although 9/12 have experienced an economic recession.
Timothy Picciott CFP® CRPC®
Have you always been suspicious of the Economic data coming out of the swamp?
If so then this is the report for you. This 17 page brief cuts to the chase and lets you know exactly how the numbers are rigged.
In this report we cover how the following numbers are rigged: GDP, uUemployment and Inflation data.
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The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly. Because of their narrow focus, sector investing will be subject to greater volatility than investing more broadly across many sectors and companies.