Will There Be A Recession In 2020?

With the current stock market at an all high, one of the biggest question on everyone’s mind is, “Will there be a recession in 2020?”

The stock market keeps on hitting new record highs. It has literally never been higher than it is now, but of course, it won’t stay that way forever.

The market runs in cycles. It goes up, it goes down.

We can’t tell EXACTLY when the market will hit bottom again, but by looking at market cycles, we can get a rough idea of whether for not a recession with happening in 2020.

How Recessions and Stocks Market Cycles Correlate

Approximately every 20 years, the market drops dramatically, and every 40 years or so, it tumbles even more. According to the charts, it looks like we may be due for one of the bigger drops in 2020.

But we have to look beyond the charts. While the cycles give us warning signs of potential crashes, predicting the market is not an exact science. The economy reacts to more than just the market cycles. You need to have the perfect storm — many events and economic conditions coming together — for a recession to happen. That could happen in the near future — or it might not.

The important thing is to be prepared for whatever may happen in 2020. Prepare yourself for a recession — but also be ready for a year without one. Either way, keep on saving for retirement and keep on making good investment decisions. Rule #1 investors know how to take advantage of all kinds of economic conditions, including stock market crashes.

Let’s look at a couple of scenarios — one where a recession might happen in 2020, and one where that’s unlikely:

Top 2020 Recession Indicators

So, what would have to happen to cause a recession in 2020?

Whatever way you slice it, 2020 will definitely be an eventful year. We’re going to have the U.S. presidential elections. International tension and the trade war with China are likely to continue, and that could undermine people’s confidence in the economy, making Americans cut back on spending.

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