This video is about the recession of 2023, the most predicted recession that so far has not come. I explore why it’s pointless to predict recessions and then show why as investors, we should ignore recessions and embrace them to earn long term stock market returns.
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BREAKING: Recession News
LEARN MORE ABOUT: Bank Failures
REVEALED: Best Investment During Inflation
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What Happened to the 2023 Recession?
In the midst of economic uncertainty, job losses, and skyrocketing national debt, the term “recession” has become a constant concern for many. The global financial crisis of 2008 left a lasting impact on millions of lives, prompting individuals, businesses, and governments to be wary of any signs of an impending recession. The year 2023 was believed by some economists to be the year when another financial downturn would hit, but to everyone’s surprise, it never came. So, what happened to the much-anticipated 2023 recession?
To understand the potential recession, we need to look at the factors that are often considered leading indicators, such as inflation, interest rates, and employment rates. Many analysts predicted that rising inflation, coupled with the withdrawal of government support programs and increased debt levels due to the pandemic, would eventually lead to the collapse of the economy. However, a series of unexpected events and policy measures helped to avert the predicted crisis.
One significant factor was the central banks of major economies, including the Federal Reserve in the United States, the European Central Bank, and the Bank of Japan, taking preemptive action and implementing accommodative monetary policies. These measures were aimed at boosting the economy and preventing the recession from taking hold. By maintaining low-interest rates and injecting liquidity into the financial system, central banks stimulated spending and investment, effectively mitigating the impact of potential economic downturns.
Furthermore, several governments introduced expansionary fiscal policies to safeguard their economies. Massive infrastructure investments, stimulus packages, and tax cuts were implemented as a means to improve job creation and support businesses. These proactive measures helped to boost consumer confidence, increase spending, and spur economic growth.
In addition to domestic policies, global cooperation played a vital role in averting the recession. International organizations like the International Monetary Fund (IMF) and the World Bank provided financial and technical assistance to countries facing economic hardships. Collaborative efforts allowed governments to access necessary resources and expertise, enabling them to overcome potential financial crises.
Another key factor was the rapid advancement in technology and digitization. The COVID-19 pandemic accelerated the adoption of digital platforms, remote work, and e-commerce, driving innovation and enabling businesses to adapt to changing circumstances. The integration of technology into various sectors increased efficiency, reduced costs, and even created new job opportunities, ensuring the stability of economies worldwide.
While these factors helped to avoid a recession, it is vital to acknowledge the role individuals and businesses played in restoring and maintaining economic stability. The resilience and adaptability exhibited during challenging times have been crucial in mitigating the severity of the crisis.
However, it is crucial to note that despite the absence of a recession in 2023, potential risks still loom on the horizon. The uncertainties surrounding the COVID-19 pandemic, geopolitical tensions, and mounting levels of debt continue to pose significant challenges to global economies. Vigilance and prudent economic policies will remain essential to ensure sustained growth and stability in the years to come.
In conclusion, the 2023 recession was averted through a combination of proactive monetary and fiscal policies, global cooperation, technological advancements, and the resilience of individuals and businesses. While this outcome provides relief to many, it is crucial to remain cautious and address the underlying risks that persist. By learning from the past, monitoring economic trends, and implementing effective policies, economies can work towards a more sustainable and prosperous future.
Nobody seems to understand that Gold has outperformed the s&p 500 since 2000 and since we came off fiat around 1970 including with dividends reinvented. You are not supposed know this i guess.. they want you stuck in fiat denominated trash. The Exchange stabilization fund rigs the us markets anyway, like most major derivative markets…..
It's possible that this pricing will never be seen again. If you have a fantastic vision for it, there is always opportunity in the midst of chaos.I have my interests set on key blue chip and top etf sectors based on performance and projected growth, I've been able to grow my portfolio to 7 figures. My strategy with my F.A Lisa Rosa Cavanagh handling my portfolio gives me the best returns even during recession.
The current situation is quite unusual. Inflation is causing the value of the US dollar to decrease, yet it's gaining strength when compared to other currencies, as well as assets like gold and real estate. Many individuals are flocking to the dollar due to their perception of its safety. Personally, I have concerns about the potential devaluation of my retirement savings, which amount to approximately $420k , due to the significant inflationary pressures.
EU market did not slow down atm, it sped up. People are spending like crazy on vacation, there are a lot of open job opportunities and lack of workers with low unemployment rates. Only thing present currently is inflation. Personal experience, your close friends will get scared of recession and stop investing try to make you join them, but you need to keep buying on constant and continual way as you did months before.
Next 1 will be last one
You loosing weight buddy? You look good. Keep up the great videos.
We are in recession for awhile now no matter what they say or what is getting reported. Those growth numbers are manipulated to make things look better.
Turned out for the UK at least to be both a dose of media driven "Brexit Bad" combined with yet another example of the only thing economists are any good at is being able to tell you tomorrow why what they predicted for today didn't happen.
Average down? No need to know where tops or bottoms are if you do that.
Another great video Toby. Have recently put 10k into my stocks and shares Isa and am planning to start investing £500 a month into S&P 500 for the foreseeable. Am 37 now and want this for my pension. My question is, if I am in this long term and there is a recession, should I invest more during that period while the share prices are lower and then continue as normal after?
seems to be more predictions of a bull run atm just to add to the confusion lol
Well, the S&P look quite flat at the moment, it struggle to break the $4600 ceiling…
Hi interest rates, high inflation, low pay rises, and hi taxation! Might not technically be a recession in terms of a shrinking economy, but it really feels like one.
Basically the stock market is simply not moving forward. It’s stuck in a three steps forward, 3 steps back cycle with up/down variations. Unless you time specifics stocks. I am broadly invested but have really seen no progress on my overall number for years now.
This is a manufactured recession to bring down inflation! But people are in for a rude awakening, food and energy inflation will rise over the coming months! Interest rates in the UK will go to 7%, expect a 20-30% drop in house prices! You heard it here first !!
I think it's coming because here in the UK people are living way beyond their means, and using credit to get by. The keeping up with the Jones effect is strong. Most are young and can't remember the 80's but my parents lost their business in the 80's and I remember every night the news saying a list of big companies that had folded that day and how many jobs. It was horrible times but it taught me that if I can't afford it then I can't have it, and that's done me zero harm. So maybe it's time that people who scrimp and save get their chance to say "told you so" and hopefully the next generation will learn just like I did.
It got postponed for the next pandemics.
Very informative as always
really enjoy your videos Toby, great quality, informative and well put together. Keep going my friend.
2008 had a strong Q2. Your point?
My company did redundancies for the first time in 21 years
Lowering my average is exactly what I have been doing for the last 3 weeks. Even today. I am gonna give it a break because it seems like the market will continue to fall and let's wait a bit and see. I am going to wait for some technical feedback like green candles etc. I am documenting my stock trading journey on my channel.
Housing is slowing up like No-one's Business
1966 even Samuri
Just listen to you
Don’t listen to these so called pundits they are just muppets pushing a agenda, the only person you should listen to is facts a company with a good moat.
That's what was xaid in 1923
Lay bricks l8ke that . Makes Wookey hse
I'm not the person to tell you what to do with yer money just trust I lol said so
As Warren Buffett said the average person doesn’t know enough about the stock market to buy individual stock so we should put it little and often into a index fund.
When did u work lol
Cheers, Just changed my buy into more shares and dumped quite a few bonds, poor return – It's a mind field but as you say keep an open mind as if all stocks crashed we would be not here!
It’s coming in my humble opinion. The rate hikes will take time to feed into the overall economy. Yield curve has been inverted, check back in time and you will see that previous crashes happened after the rate hikes had peaked and on the way down. Other indicators look poop, PMI etc. In terms of selling the top/ buying the bottom, nobody knows. You need to look at your time horizon and the volatility of your investments. I have 3 years left of. 1.27% interest on,y mortgage, so want to be low risk/vol. I’’ve gone Premium Bonds for the bulk, DCA into Vanguard ISA’s and about 5- 10% for discretionary trading across multiple assets incl crypto.
great video and great in details about this topic. best thing to do is to zoom out and look at the long term, i've still got about 20 years left before retirement so still little bit more time to save and invest
yep, here in the UK I was NEVER given any advice about investing other than its risky…
so I missed out big time although i did buy a second house to rent out for a 10 years which did ok but not as good as the sp500 by a country mile.
AFter I decided to sell that house i was left with no idea of how to invest the money and no idea of the mind set needed to hold steady so lost some in the crash.
We really do need better education in this country when its such an important subject.
Im 50% cash in 1 year savings accounts and 50% world index and holding that position, I will rebalance every 6 to 12 months at most unless something dramatic happens like a big crash at which point I will put more cash into the index, I think the sp500 is overvalued hence my reluctance to go more than 50% right now, but if it goes up I will let it ride and naturally increase that 50% on its own, I'm already retired so need to be careful whilst taking some risk to allow growth.
They changed the definition of recession. It used to be two quarters of negative GDP growth. Now it isn't.
It is classic newspeak.