Recession 2023: To Be or Not To Be

What do we do if there is a recession in 2023? The stock market really has two options on a given day—it can go up, or it can go down. We know this. History has shown that the markets are resilient and having the willpower and a plan during moments of turmoil is key to building wealth.

Wisdom cannot be found in someone who has not endured challenges or learning opportunities. Thankfully (sarcasm), many of us gained much wisdom, as well as lessons that we wish not to repeat. And not so long ago.

15 years ago, the world experienced the greatest recession since the Great Depression of the ’30s, now referred to as the Great Financial Crisis (GFC). And it’s only been three years since the world shut down due to a global pandemic. In both instances, investors rode an intense rollercoaster of volatility as confidence in governments, healthcare, banking institutions, and globalization crashed along with the markets.

BY RENEE MICHEL, MBA, AND JOE SWEENEY, CFP ® , FINANCIAL ADVISORS AT SWEENEY & MICHEL, LLC

Those of us who chose to “grin and bare it” were rewarded, as in both instances, the markets eventually recovered and surpassed their prior highs. Some investors or traders that could not take the stress of watching their balances drop are still “waiting for the right time” to get back in. Others sold when they should have bought and bought when they should have sold. It is human nature to want to act in times of chaos.

If you are struggling with the emotions and fears of a pending recession, talking with an investment advisor can be beneficial to your long-term investment success. We are your partner, planner, financial therapist, confidant, and coach.