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Recession

A recession is technically defined by economists as a decline in GDP for two or more consecutive quarters. Recessions are almost always accompanied by:

  • A drop in stock market prices
  • An increase in unemployment
  • A decline in the housing market

Many investors and economists consider recessions an inevitable part of the economic cycle and for them to be unavoidable.

If a recession continues for long enough and is severe enough it will be referred to as a depression.