Across Ireland, the EU, and the US we’re seeing a slowdown in economic growth due to an increase in interest rates and while we’re not in a recession yet we may go into one.
I’ll talk today about what happens to stock markets and the investment of pension funds if we do go into a recession.
In a recession, you’ve got two consecutive quarters of negative economic growth.
Negative economic growth will mean lower company earnings and a drop off of in the stock markets.
You’ll see investment funds and pension funds can drop down in value.
They’ll stay at a lower level for the short term, the actual duration of it will depend on the duration of the recession and the severity of it as well.
Typically about 5 months, 6 months ahead of an economy coming out of recession the stock markets will recover or start to recover.
And on the basis of investors who believe that the worst is behind us will start to buy back in at better value.
For monthly investors and monthly pension investors, you’re buying in at a lower level that can represent an opportunity of value there.
Lump sum investors and pension investors unfortunately can be just riding out the storm and waiting for long-term returns.
If you found this article helpful and would like to learn more about your investments, feel free to connect and start a conversation or contact me directly at +353 (87) 778 5325☎️
𝐂𝐡𝐞𝐜𝐤 𝐎𝐮𝐭 𝐈𝐧𝐭𝐞𝐠𝐫𝐚𝐥 𝐅𝐢𝐧𝐚𝐧𝐜𝐢𝐚𝐥 𝐏𝐥𝐚𝐧𝐧𝐢𝐧𝐠 𝐘𝐨𝐮𝐓𝐮𝐛𝐞 𝐂𝐡𝐚𝐧𝐧𝐞𝐥