You may have noticed that the economy after the pandemic has been volatile. And while there has been talk of a possible recession for a few years, we have yet to enter a traditional recession. A recession is defined as a consistent, widespread downturn in the economy. And although there have been major market downturns recently, there have also been areas of stability.
Instead of qualifying our current economic situation as a recession, experts have been using the term “rolling recession.” The term means that instead of a widespread decline in economic activity affecting the entire country, certain industries or regions experience a downturn while others continue to grow.
For example, a rolling recession might occur if California experiences a decline in the tech and housing market while Florida experiences growth in the energy sector. The decline in the housing market would cause a contraction in economic activity in California, while the growth in the energy sector in Florida would help support overall economic growth in the country.
Currently, certain economic indicators look strong: inflation looks like it might slow down and the Gross Domestic Product is greater than expected. But other areas have slowed down or see downturns. Consumers still feel the effects of the sudden increase in inflation, and you may have noticed inflation making its way into your life. And industries such as housing and manufacturing continue their woes.
In general, experts recommend caution when handling your finances in times like these. Rolling recessions are difficult to track, and there is uncertainty about if a rolling recession will turn into a widespread recession. So, careful spending and careful saving are likely going to be good strategies until the country reaches solid economic ground.
Understanding the connection between a rolling recession and your investing and saving strategy can be key to the financial health of your retirement. If you have questions about your financial picture, Contact us at (540) 720-5656 to get started with a financial professional.
Sources:
- https://www.forbes.com/sites/qai/2023/02/14/what-is-a-rolling-recession/?sh=57898b0f535f
- https://www.investopedia.com/terms/r/recession.asp
- https://www.cnbc.com/2023/01/27/what-is-a-rolling-recession-and-are-we-in-one-experts-explain.html
- https://www.weforum.org/agenda/2023/03/what-is-a-rolling-recession-economy-news/
Megan Jones joined the ILG Financial team in 2020 as marketing director. Megan and her husband live in Fredericksburg, VA with their German Short Haired Pointer, Gus. Megan is a graduate of Longwood University and holds a degree in communications. Megan is the oldest of Dave Lopez’s three children and not only enjoys working alongside her father, but also with her cousin, Chase, who joined the ILG Financial team in 2020 as an advisor. Megan is also a fully licensed Life, Health, and Annuity agent. When not at work, Megan enjoys sitting on the back porch with family and friends enjoying food and music.
Amy Anderson joined the ILG Financial team in 2023 as the client relations coordinator. Her responsibilities include scheduling of appointments, annual check-up notifications, and annuity and required minimum distribution assistance. She is a graduate of Harding University with a degree in Computer Information Systems. Amy and her husband have two children and she enjoys reading, crocheting, music and spending time with her family.
Terri Center joined the ILG Financial team in 2019 as client services manager. She handles client records, application processing, and gathering information to provide a professional and friendly experience with all of our clients. Terri is a graduate of Oakland University. She is married and has two children. She enjoys hiking, family time, and puzzle challenging video games. She also likes to share her creativity in her canvas paintings and sewing projects.
Jessica Carson joined the ILG Financial team in 2018 as an agent. Jessica and her husband have four children, two dogs, 3 barn cats, 5 chickens, and three parakeets. She indeed loves her children and pets! When not at work, Jessica enjoys playing the piano and cello as well as traveling and spending time outside with her family, hiking, fishing, and boating.
Chase Lopez joined the ILG Financial team in 2020 as an advisor. Chase is a 2016 James Madison University graduate with a degree in management. Chase has been trained under the tutelage of Dave Lopez, who is not only the founder and managing member of ILG Financial, but also is Chase’s uncle and godfather. He also enjoys working alongside his cousin, Megan, who is Dave’s daughter.