Three Warning Signs of a Potential Recession

recession

When it comes to a recession, what are the warning signs that you should be aware of in order to strategically protect your portfolio? Within the United States, we are in a time of flux – that is, conversations about trade wars and global trade are happening daily. This, subsequently, can cause confusion in the marketplace.

For your own financial portfolio, it is important to be aware of potential warning signs that can indicate an upcoming recession. The U.S. Money Reserve recently released an informative video that outlines such warning signs, offering a great resource to each and every investor. We’ve developed a recap of this video for you to bookmark and use for your own portfolio strategy.

Here are three warning signs of a potential recession:

1. Increases in interest rates

Federal interest rate increases can play a crucial role in the US stock market. Since June 13th, we have seen only three positive days in the stock market with consumer goods and retail stores down, particularly. Retail stores are where consumers purchase goods and, when they purchase goods, this supports the stock value of consumer foods and retail stores.

If the interest rate is a key role in driving the stock price down within these industries, it confirms that the stock prices are overvalued, and this is something that the U.S. Money Reserve has been discussing for many months now.

2. Watch the Shiller Index

The Shiller Index has continued to rise with US Treasury bond yields continuing to decline. This is further confirmation that the stock market is overvalued, and the lack of competent confidence globally is starting to impact the US economy. These are crucial items to understand when you have money sitting in the market. The United States Stock Market is at one of the most volatile and critical points that the U.S. Money Reserve has seen in 10 to 15 years.

3. Be aware of ‘bubbles’ – and what experts are sharing

Consumers are concerned about ‘bubbles’, with many saying that the United States is currently in a bubble. Top experts across the entire United States and globally are expressing that the United States is headed for a deep-seated recession. Be aware of such a bubble, and monitor what experts are sharing about the stock market each and every day.

The U.S. Money Reserve is encouraging those who are in the financial markets to look at information and data at face value. Make decisions based on such data, and be aware of what experts are sharing from a knowledge and data point of view.