A recession refers to a general decline in economic\nactivity. It is a time when unemployment increases, consumer spending lowers,\nand the economic output is reduced. Interest rates also generally drop as the\nFederal Reserve tries to support the economy. Typically, if the economy has\nseen a negative Gross Domestic Product (GDP) for two consecutive quarters, it\nis assumed to be in recession. The U.S. economy has already been through this\nin early 2022. However, the National Bureau of Economic Research (NBER) refuted\nthis prognosis and claimed that the U.S. economy was not in a recession in\n2022.<\/p>\n\n\n\n
Nevertheless, the economy may be headed into a recession in 2023. There have been talks about the Federal Reserve raising interest rates to tackle high inflation. Inflation has been consistently high in the country this year. High-interest rates may help with inflation, but they can also negatively impact the economy by putting it into a recession. Recession can directly affect you in a number of ways. From the lingering fear of losing your job to the falling stock prices and red marks on your investment portfolio, there may be considerable financial upheaval in the near future. However, looking at the recession as a market cycle that will eventually pass is essential. Consider consulting with a professional financial advisor<\/strong><\/a> who can advise you on how to prepare your finances for a recession and safeguard your investments. <\/p>\n\n\n\n Meanwhile, you can learn how to recession-proof your portfolio to\navoid damages or keep them at a minimum. <\/p>\n\n\n\n Table of Contents<\/p>\n