The US economy has seen a couple of recessions over the past two decades. The most brutal one being the great recession, which remains an anomalous event. Fast forward twelve or so years, and we entered into the 2020 recession, one of the fastest recessions ever recorded that resulted in a massive run-up of stock, crypto, and real estate prices. Now, as a recession looms on the horizon, Americans are struggling to figure out whether or not we’re about to hit a short-term speed bump or a long-term depression.
So many different economists, newscasters, and financial bloggers love to debate whether or not we’re truly in a recession. By definition, we should be, but the experts are slowly taking their time, trying to calculate the true impact of this latest economic cycle we’ve entered. But does being in a recession really matter? Yes, recessions affect almost every aspect of financial life. Labor slows down, consumer prices go up while asset prices drop, and it’s harder to make economic progress. But, is that what we’re experiencing in 2022, or is the term “recession” just propping up fabricated fear that matters far less than we think?
In this bonus episode of On The Market, Dave gives his insight into whether or not the US economy has entered a recession, how this affects real estate investors, and why experts can’t agree on a definition. If you’re actively investing, Dave gives some good advice on how to keep your head screwed on straight while every news outlet plays chicken little.
Note By BiggerPockets: These are opinions written by the author and do not necessarily represent the opinions of BiggerPockets.