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.
[link_button link=”http://scpublicradio.org/post/recession-around-corner” size=”large” color=”#0D4F8B” align=”left”]LISTEN TO THE REPLAY [/link_button]
“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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