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®
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