PRESQUE ISLE, ME Wall Street has taken a big hit in 2016 causing big concerns for investors. The questions on everyone’s mind is, will the economy decline or continue to grow?
”Economists have studied this for the last 250 years. They have come to realize that this is a natural process within capitalism; you have a long period of growth followed by a short recession. What’s happening right now is everyone around the world is wondering whether we are about to enter into another recession,” said retired professor of economics, Bob Murray. “The last one was in 2008. Recessions usually happen every 5-10 years. So we are kind of in the time frame for a recession. But no one can say for sure.”
A recession is when there are 6 months or more of negative growth or the economy gets smaller. The US economy currently grows around 3% Economists say predicting the markets is challenging. Murray says to be financially ready, in the event you lose your job you should have three months' worth of income in an emergency savings account. Financial advisors, like Gretchen Morse, can help protect your financial future and your retirement.
“Actually, this can be a great buying opportunity for many investors out there,” said Gretchen Morse, financial advisor for Edward Jones. “So if you are participating in a retirement plan through work and you're making regular contributions this can be advantageous because you're trying to buy low, and again this is a buying opportunity because prices are down and then we want to sell high at some point.”
Murray says that although the US economy is very strong right now, but there is no way to tell what 2016 might bring.