Recessions and Stocks: These are the Facts

Posted by

The new meme of the moment is that we’re “overdue” for a recession. As if there’s any such thing. Recessions don’t spring from the ground, fully formed, without warning and for no other reason than that we haven’t had one for awhile.

And, more importantly, the impact of a recession on your portfolio is not guaranteed to be chaotic – or even damaging – necessarily.

What if I told you that, over the last 90 years, stocks were equally likely to be positive during a recession as they were to be negative?

What if I told you that the average length of recessions has been cut in half in the post-WWII era from what it was before, and that the expansion periods between recessions have more than doubled?

My colleague Michael Batnick looked at the data on recessions and stock prices and you’ll be surprised by some of his findings.

I send you there now:

Are We Due For A Recession? (Irrelevant Investor)

This content, which contains security-related opinions and/or information, is provided for informational purposes only and should not be relied upon in any manner as professional advice, or an endorsement of any practices, products or services. There can be no guarantees or assurances that the views expressed here will be applicable for any particular facts or circumstances, and should not be relied upon in any manner. You should consult your own advisers as to legal, business, tax, and other related matters concerning any investment.

The commentary in this “post” (including any related blog, podcasts, videos, and social media) reflects the personal opinions, viewpoints, and analyses of the Ritholtz Wealth Management employees providing such comments, and should not be regarded the views of Ritholtz Wealth Management LLC. or its respective affiliates or as a description of advisory services provided by Ritholtz Wealth Management or performance returns of any Ritholtz Wealth Management Investments client.

References to any securities or digital assets, or performance data, are for illustrative purposes only and do not constitute an investment recommendation or offer to provide investment advisory services. Charts and graphs provided within are for informational purposes solely and should not be relied upon when making any investment decision. Past performance is not indicative of future results. The content speaks only as of the date indicated. Any projections, estimates, forecasts, targets, prospects, and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others.

Wealthcast Media, an affiliate of Ritholtz Wealth Management, receives payment from various entities for advertisements in affiliated podcasts, blogs and emails. Inclusion of such advertisements does not constitute or imply endorsement, sponsorship or recommendation thereof, or any affiliation therewith, by the Content Creator or by Ritholtz Wealth Management or any of its employees. Investments in securities involve the risk of loss. For additional advertisement disclaimers see here: https://www.ritholtzwealth.com/advertising-disclaimers

Please see disclosures here.

What's been said:

Discussions found on the web
  2. Business of wealth creation | Vestact's – Quirk with quark commented on Mar 10

    […] Josh Brown has a look at the data from recessions, based on his findings stocks are as likely to be up during a recession as they are to be down. Also since WW2 receptions have been shorter and periods of growth have lasted longer, what a time to be alive – Recessions and Stocks: These are the Facts […]

  3. Is Bitcoin Era a scam? commented on Sep 19

    … [Trackback]

    […] Read More here on that Topic: thereformedbroker.com/2016/03/08/recessions-and-stocks-these-are-the-facts/ […]

  4. bitcoin evolution review commented on Sep 23

    … [Trackback]

    […] Find More to that Topic: thereformedbroker.com/2016/03/08/recessions-and-stocks-these-are-the-facts/ […]

  5. bitcoin loophole review 2020 commented on Sep 27

    … [Trackback]

    […] Here you can find 32491 more Information on that Topic: thereformedbroker.com/2016/03/08/recessions-and-stocks-these-are-the-facts/ […]

  6. grc tools commented on Oct 17

    … [Trackback]

    […] Information on that Topic: thereformedbroker.com/2016/03/08/recessions-and-stocks-these-are-the-facts/ […]

  7. nằm mơ thấy nấu ăn commented on Nov 23

    … [Trackback]

    […] Read More to that Topic: thereformedbroker.com/2016/03/08/recessions-and-stocks-these-are-the-facts/ […]

  8. knockoff omega skeleton clone commented on Dec 08

    … [Trackback]

    […] Read More to that Topic: thereformedbroker.com/2016/03/08/recessions-and-stocks-these-are-the-facts/ […]

  9. w888 commented on Dec 17

    … [Trackback]

    […] Read More Information here on that Topic: thereformedbroker.com/2016/03/08/recessions-and-stocks-these-are-the-facts/ […]

  10. diamond painting kits commented on Dec 17

    … [Trackback]

    […] Find More Info here to that Topic: thereformedbroker.com/2016/03/08/recessions-and-stocks-these-are-the-facts/ […]

  11. DevSecOps commented on Dec 21

    … [Trackback]

    […] Find More Info here on that Topic: thereformedbroker.com/2016/03/08/recessions-and-stocks-these-are-the-facts/ […]

  12. rolex replica commented on Dec 21

    … [Trackback]

    […] Read More on on that Topic: thereformedbroker.com/2016/03/08/recessions-and-stocks-these-are-the-facts/ […]

  13. where to order weed online commented on Dec 22

    … [Trackback]

    […] Read More Information here to that Topic: thereformedbroker.com/2016/03/08/recessions-and-stocks-these-are-the-facts/ […]

  14. 토토 commented on Dec 24

    … [Trackback]

    […] There you will find 94072 additional Info to that Topic: thereformedbroker.com/2016/03/08/recessions-and-stocks-these-are-the-facts/ […]

HowIInvestMyMoney