Is a Recession Around the Corner?
Some analysts are saying that we are long overdue for a recession, especially since recent gross domestic product numbers came in below the previous three quarters. Listen to Wes Johnson, CFP® on South Carolina Business Review on the concern that the economy is starting to slow and potentially head for recession. Click the link below to listen to the replay.
“If you’re just looking at fundamental data points, there really aren’t many things about our economy that keep us up at night. The labor market is very tight, and employers are having a hard time finding qualified employees. That’s a pretty nice problem to have and it’s a problem that will eventually result in higher wages, but so far wage growth has been pretty modest. Wage growth is around 2.3% right now, which is just barely above inflation. If wage growth gets up to around 4%, that’s going to put a dent in corporate profits and it will push inflation higher. If that happens, we may see the fed get a little more aggressive with their rate hikes, which the stock market probably won’t like, at least temporarily. We feel like the biggest risks to our economy are geo-political risks. If oil was to skyrocket or if a serious trade war materialized, those are the things that could derail our economy. Outside of a geo-political event, the risk of a recession the next 12 months is very low.” —Wes Johnson, CERTIFIED FINANCIAL PLANNER™. Click here to learn more about Wes.
Click here to listen to the full South Carolina Business Review radio interview.
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