While the pictures from the #WebbSpace Telescope have transfixed everyone with an interest in outer space, back on planet earth, investors are fixated on #recession. We looked at the history of recessions and found some interesting facts. Here’s the lowdown: 1/7
There have been 12 official recessions. On an average, they happen about every 6.5 years. The average period of #recession lasts about 10 months. But the ones in 1973, 1981, & 2007 lasted for well over a year. 2/7
Before the #pandemic, the deepest recessions that saw #GDP decline by more than 3%, started in 1957 (tightening of monetary policy), 1973 (stagflation, oil embargo) and 2007 (global financial crisis). 3/7
Now, for the good news. While almost everyone who is anyone is predicting a recession, the US 3-month payroll data still shows healthy #employment stats. They are nowhere close to levels seen during past recessions. #InterestRates have also gone down from recent highs. 4/7
At the same time, based on data by #JPMorgan, real #GDP growth has largely been on an upward track since the pandemic-induced slowdown faded. The good news is that India is in the leading position for real GDP growth (currently at slightly less than 9%). 5/7
Looking at all the indicators, a slowdown has happened and a recession could well be closer than the Southern Ring #Nebula, but the global economy seems to be in a relatively decent place to handle it. 6/7
Considering how long recessions usually last, how #markets have behaved in the past, and where #India stands in the global scenario, it makes sense for #investors to stay invested, rather than exit and come back later. 7/7
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