5 Signs That A Recession Is Coming

The economy is cyclical. That means there are periods of expansion followed by periods of contraction, or recession. Most recessions are mild and last only a few months. But every so often, we experience a more severe recession that can last for years and have a profound impact on our lives.

So, how can we tell when a recession is coming? Here are five signs to watch out for:

1. Rising interest rates

One of the most important indicators of a recession is rising interest rates. When rates go up, it becomes more expensive to borrow money, which can put a brakes on spending and investment.

2. Falling stock prices

Another sign of a recession is falling stock prices. This is because when investors are worried about the economy, they tend to sell stocks and invest in safe havens like bonds.

3. declining home prices

Declining home prices is another sign that a recession might be on the horizon. This is because when people feel uncertain about the future, they are less likely to buy a home, which can lead to falling prices.

4. rising unemployment

Rising unemployment is another indication that a recession might be coming. This is because when people lose their jobs, they have less money to spend, which can further drag down the economy.

5. slowing economic growth

One of the most important indicators of a recession is slowing economic growth. This is because when the economy is growing slowly, it means that businesses are not doing as well and people are not spending as much money.

These are just a few of the signs that a recession might be on the horizon. So, if you see these signs, it's important to be prepared.