{"id":10724,"date":"2022-08-12T14:52:56","date_gmt":"2022-08-12T06:52:56","guid":{"rendered":"https:\/\/www.infinitysolutions.com\/?p=10724"},"modified":"2022-08-12T14:52:56","modified_gmt":"2022-08-12T06:52:56","slug":"a-recession-like-no-other-what-does-it-mean-for-investors","status":"publish","type":"post","link":"https:\/\/www.infinitysolutions.com\/blog\/a-recession-like-no-other-what-does-it-mean-for-investors\/","title":{"rendered":"A Recession Like No Other: What Does It Mean For Investors?"},"content":{"rendered":"

The US economy shrunk for a second consecutive quarter in Q2 2022, which technically means that it is in recession. We look at the whys and wherefores and what it means for investors. <\/em><\/p>\n

The US witnessed a 1.6% contraction of GDP in Q1 followed by a Q2 contraction of 0.9%.<\/a> Technically, according to official definitions<\/a>, that means the country entered recession. However, in the US it is the National Bureau of Economic Research (NBER) that decides whether the US is in recession, and they have yet to officially announce that to be the case.<\/p>\n

That could be because this is a recession like no other. A recession is generally characterised by job losses, a slowdown in private sector activity, the closing down of businesses and strain for household finances. Yet this is not what is currently happening in the US.<\/p>\n

While it\u2019s true that business investment and government spending are weakening, consumer spending remains relatively strong, and this is providing a glimmer of hope for many economists who are taking it as an indication of underlying growth. Another positive is the relative strength of the labour market, which it is hoped will further bolster the economy.<\/p>\n

US secretary to the Treasury, Janet Yellen, is bullish saying that the US economy \u2018remains resilient\u2019. Nevertheless, let\u2019s not pretend that the economic landscape is rosy. The Federal Reserve faces the difficult task of attempting to both slow inflation to a target rate of 2%<\/a> and sustain economic growth, which is no mean feat.<\/p>\n

The Fed uses interest rates to attempt to counter high inflation. These were increased by 0.75% in July, in line with expectations following rises of 0.25% and 0.50% in March and May. The aim is to keep rates between 2.25% and 2.5% and whether there will be additional rate rises later in the year is the question on everyone\u2019s lips.<\/p>\n

Rob Clarry, investment strategist at, Evelyn Partners, Infinity\u2019s exclusive partner in Asia said \u2018The key question that markets have been grappling with over the last month is whether the Fed will deviate from its current tightening plans. Falling commodity prices, deteriorating consumer confidence and slowing growth could tempt the Fed to take its foot off the gas in upcoming meetings.\u2019<\/p>\n

If inflation continues to rise, the Fed will need to decide whether to prioritise reducing inflation or maintaining growth. They are more likely to opt for the former which could mean a broader economic slowdown.<\/p>\n

Will the Fed succeed in taming inflation? Will interest rates rise further in 2022? The uncertainty surrounding these big questions are inevitably affecting global stock markets.<\/p>\n

After the post-pandemic rally in 2021, the first half of 2022 has been characterised by market weakness and has been uncomfortable for many investors with bonds and equities falling in response to high inflation and interest rates. In Q2 the MSCI World Index experienced its sharpest fall in 50 years.<\/p>\n

In spite of the gloomy news, we still believe that staying invested over the long term is the wisest course of action for most of our clients. Exiting the market at this point will mean losing out on the rebound when there is a recovery, which there inevitably will be. If your investments are concentrated in multi-asset portfolios you can be sure that active managers will be focusing on quality, reliable businesses and diversifying portfolios during this period of market correction. They will also be profiting from what is essentially a buying opportunity in preparation for the recovery.<\/p>\n

If you have concerns regarding your investments, speak to your financial adviser. It is possible to rebalance your portfolio and adopt a more defensive position, but knee-jerk reactions should be avoided.<\/p>\n","protected":false},"excerpt":{"rendered":"

The US economy shrunk for a second consecutive quarter in Q2 2022, which technically means that it is in recession. We look at the whys and wherefores and what it means for investors. The US witnessed a 1.6% contraction of GDP in Q1 followed by a Q2 contraction of 0.9%. Technically, according to official definitions,…<\/p>\n","protected":false},"author":2,"featured_media":10725,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false},"categories":[153,6,45,66,69],"tags":[],"class_list":["post-10724","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog","category-expatriate-financial-planning","category-investment-management","category-viewpoint","category-financial-planning","category-153","category-6","category-45","category-66","category-69","description-off"],"acf":[],"yoast_head":"\nA Recession Like No Other: What Does It Mean For Investors?<\/title>\n<meta name=\"description\" content=\"Infinity Financial Solutions The US economy shrunk for a second consecutive quarter in Q2 2022, which technically means that it is in recession.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.infinitysolutions.com\/blog\/a-recession-like-no-other-what-does-it-mean-for-investors\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"A Recession Like No Other: What Does It Mean For Investors?\" \/>\n<meta property=\"og:description\" content=\"Infinity Financial Solutions The US economy shrunk for a second consecutive quarter in Q2 2022, which technically means that it is in recession.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.infinitysolutions.com\/blog\/a-recession-like-no-other-what-does-it-mean-for-investors\/\" \/>\n<meta property=\"og:site_name\" content=\"Infinity Financial Solutions\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/infinityfinancialsolutions\" \/>\n<meta property=\"article:published_time\" content=\"2022-08-12T06:52:56+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.infinitysolutions.com\/wp-content\/uploads\/a-recession-like-no-other-what-does-it-mean-for-investors.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1000\" \/>\n\t<meta property=\"og:image:height\" content=\"611\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Infinity Financial Solutions\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@investmentasia\" \/>\n<meta name=\"twitter:site\" content=\"@investmentasia\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Infinity Financial Solutions\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.infinitysolutions.com\/blog\/a-recession-like-no-other-what-does-it-mean-for-investors\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.infinitysolutions.com\/blog\/a-recession-like-no-other-what-does-it-mean-for-investors\/\"},\"author\":{\"name\":\"Infinity Financial Solutions\",\"@id\":\"https:\/\/www.infinitysolutions.com\/#\/schema\/person\/a2ccb82ec7b4b1e79d5d970a104927ac\"},\"headline\":\"A Recession Like No Other: What Does It Mean For Investors?\",\"datePublished\":\"2022-08-12T06:52:56+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.infinitysolutions.com\/blog\/a-recession-like-no-other-what-does-it-mean-for-investors\/\"},\"wordCount\":612,\"publisher\":{\"@id\":\"https:\/\/www.infinitysolutions.com\/#organization\"},\"image\":{\"@id\":\"https:\/\/www.infinitysolutions.com\/blog\/a-recession-like-no-other-what-does-it-mean-for-investors\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.infinitysolutions.com\/wp-content\/uploads\/a-recession-like-no-other-what-does-it-mean-for-investors.jpg\",\"articleSection\":[\"Blog\",\"Expatriate Financial Planning\",\"Investment Management\",\"Viewpoint\",\"Financial Planning\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.infinitysolutions.com\/blog\/a-recession-like-no-other-what-does-it-mean-for-investors\/\",\"url\":\"https:\/\/www.infinitysolutions.com\/blog\/a-recession-like-no-other-what-does-it-mean-for-investors\/\",\"name\":\"A Recession Like No Other: What Does It Mean For Investors?\",\"isPartOf\":{\"@id\":\"https:\/\/www.infinitysolutions.com\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.infinitysolutions.com\/blog\/a-recession-like-no-other-what-does-it-mean-for-investors\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.infinitysolutions.com\/blog\/a-recession-like-no-other-what-does-it-mean-for-investors\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.infinitysolutions.com\/wp-content\/uploads\/a-recession-like-no-other-what-does-it-mean-for-investors.jpg\",\"datePublished\":\"2022-08-12T06:52:56+00:00\",\"description\":\"Infinity Financial Solutions The US economy shrunk for a second consecutive quarter in Q2 2022, which technically means that it is in recession.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.infinitysolutions.com\/blog\/a-recession-like-no-other-what-does-it-mean-for-investors\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.infinitysolutions.com\/blog\/a-recession-like-no-other-what-does-it-mean-for-investors\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.infinitysolutions.com\/blog\/a-recession-like-no-other-what-does-it-mean-for-investors\/#primaryimage\",\"url\":\"https:\/\/www.infinitysolutions.com\/wp-content\/uploads\/a-recession-like-no-other-what-does-it-mean-for-investors.jpg\",\"contentUrl\":\"https:\/\/www.infinitysolutions.com\/wp-content\/uploads\/a-recession-like-no-other-what-does-it-mean-for-investors.jpg\",\"width\":1000,\"height\":611,\"caption\":\"Global recession economy and declining World business crisis or international decline and economic fall or falling with a downward trend as a financial concept in a 3D illustration style.\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.infinitysolutions.com\/blog\/a-recession-like-no-other-what-does-it-mean-for-investors\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.infinitysolutions.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"A Recession Like No Other: What Does It Mean For Investors?\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.infinitysolutions.com\/#website\",\"url\":\"https:\/\/www.infinitysolutions.com\/\",\"name\":\"Infinity Financial Solutions\",\"description\":\"Infinity specialises in providing superior financial planning solutions to expatriates throughout Asia and across the world.\",\"publisher\":{\"@id\":\"https:\/\/www.infinitysolutions.com\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.infinitysolutions.com\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/www.infinitysolutions.com\/#organization\",\"name\":\"Infinity Solutions\",\"url\":\"https:\/\/www.infinitysolutions.com\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.infinitysolutions.com\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/www.infinitysolutions.com\/wp-content\/uploads\/infinity-solutions-logo-no-tagline-200x57.png\",\"contentUrl\":\"https:\/\/www.infinitysolutions.com\/wp-content\/uploads\/infinity-solutions-logo-no-tagline-200x57.png\",\"width\":200,\"height\":57,\"caption\":\"Infinity Solutions\"},\"image\":{\"@id\":\"https:\/\/www.infinitysolutions.com\/#\/schema\/logo\/image\/\"},\"sameAs\":[\"https:\/\/www.facebook.com\/infinityfinancialsolutions\",\"https:\/\/x.com\/investmentasia\",\"https:\/\/twitter.com\/investmentasia\"]},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.infinitysolutions.com\/#\/schema\/person\/a2ccb82ec7b4b1e79d5d970a104927ac\",\"name\":\"Infinity Financial Solutions\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.infinitysolutions.com\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/19bd93e3f8e408d8b46efaf842f367410aeba6accb118db4d6e32ff12bcdd882?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/19bd93e3f8e408d8b46efaf842f367410aeba6accb118db4d6e32ff12bcdd882?s=96&d=mm&r=g\",\"caption\":\"Infinity Financial Solutions\"},\"description\":\"A leading provider of expat financial services and wealth management services across Asia.\",\"url\":\"https:\/\/www.infinitysolutions.com\/author\/infinity\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"A Recession Like No Other: What Does It Mean For Investors?","description":"Infinity Financial Solutions The US economy shrunk for a second consecutive quarter in Q2 2022, which technically means that it is in recession.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.infinitysolutions.com\/blog\/a-recession-like-no-other-what-does-it-mean-for-investors\/","og_locale":"en_US","og_type":"article","og_title":"A Recession Like No Other: What Does It Mean For Investors?","og_description":"Infinity Financial Solutions The US economy shrunk for a second consecutive quarter in Q2 2022, which technically means that it is in recession.","og_url":"https:\/\/www.infinitysolutions.com\/blog\/a-recession-like-no-other-what-does-it-mean-for-investors\/","og_site_name":"Infinity Financial Solutions","article_publisher":"https:\/\/www.facebook.com\/infinityfinancialsolutions","article_published_time":"2022-08-12T06:52:56+00:00","og_image":[{"width":1000,"height":611,"url":"https:\/\/www.infinitysolutions.com\/wp-content\/uploads\/a-recession-like-no-other-what-does-it-mean-for-investors.jpg","type":"image\/jpeg"}],"author":"Infinity Financial Solutions","twitter_card":"summary_large_image","twitter_creator":"@investmentasia","twitter_site":"@investmentasia","twitter_misc":{"Written by":"Infinity Financial Solutions","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.infinitysolutions.com\/blog\/a-recession-like-no-other-what-does-it-mean-for-investors\/#article","isPartOf":{"@id":"https:\/\/www.infinitysolutions.com\/blog\/a-recession-like-no-other-what-does-it-mean-for-investors\/"},"author":{"name":"Infinity Financial Solutions","@id":"https:\/\/www.infinitysolutions.com\/#\/schema\/person\/a2ccb82ec7b4b1e79d5d970a104927ac"},"headline":"A Recession Like No Other: What Does It Mean For Investors?","datePublished":"2022-08-12T06:52:56+00:00","mainEntityOfPage":{"@id":"https:\/\/www.infinitysolutions.com\/blog\/a-recession-like-no-other-what-does-it-mean-for-investors\/"},"wordCount":612,"publisher":{"@id":"https:\/\/www.infinitysolutions.com\/#organization"},"image":{"@id":"https:\/\/www.infinitysolutions.com\/blog\/a-recession-like-no-other-what-does-it-mean-for-investors\/#primaryimage"},"thumbnailUrl":"https:\/\/www.infinitysolutions.com\/wp-content\/uploads\/a-recession-like-no-other-what-does-it-mean-for-investors.jpg","articleSection":["Blog","Expatriate Financial Planning","Investment Management","Viewpoint","Financial Planning"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/www.infinitysolutions.com\/blog\/a-recession-like-no-other-what-does-it-mean-for-investors\/","url":"https:\/\/www.infinitysolutions.com\/blog\/a-recession-like-no-other-what-does-it-mean-for-investors\/","name":"A Recession Like No Other: What Does It Mean For Investors?","isPartOf":{"@id":"https:\/\/www.infinitysolutions.com\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.infinitysolutions.com\/blog\/a-recession-like-no-other-what-does-it-mean-for-investors\/#primaryimage"},"image":{"@id":"https:\/\/www.infinitysolutions.com\/blog\/a-recession-like-no-other-what-does-it-mean-for-investors\/#primaryimage"},"thumbnailUrl":"https:\/\/www.infinitysolutions.com\/wp-content\/uploads\/a-recession-like-no-other-what-does-it-mean-for-investors.jpg","datePublished":"2022-08-12T06:52:56+00:00","description":"Infinity Financial Solutions The US economy shrunk for a second consecutive quarter in Q2 2022, which technically means that it is in recession.","breadcrumb":{"@id":"https:\/\/www.infinitysolutions.com\/blog\/a-recession-like-no-other-what-does-it-mean-for-investors\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.infinitysolutions.com\/blog\/a-recession-like-no-other-what-does-it-mean-for-investors\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.infinitysolutions.com\/blog\/a-recession-like-no-other-what-does-it-mean-for-investors\/#primaryimage","url":"https:\/\/www.infinitysolutions.com\/wp-content\/uploads\/a-recession-like-no-other-what-does-it-mean-for-investors.jpg","contentUrl":"https:\/\/www.infinitysolutions.com\/wp-content\/uploads\/a-recession-like-no-other-what-does-it-mean-for-investors.jpg","width":1000,"height":611,"caption":"Global recession economy and declining World business crisis or international decline and economic fall or falling with a downward trend as a financial concept in a 3D illustration style."},{"@type":"BreadcrumbList","@id":"https:\/\/www.infinitysolutions.com\/blog\/a-recession-like-no-other-what-does-it-mean-for-investors\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.infinitysolutions.com\/"},{"@type":"ListItem","position":2,"name":"A Recession Like No Other: What Does It Mean For Investors?"}]},{"@type":"WebSite","@id":"https:\/\/www.infinitysolutions.com\/#website","url":"https:\/\/www.infinitysolutions.com\/","name":"Infinity Financial Solutions","description":"Infinity specialises in providing superior financial planning solutions to expatriates throughout Asia and across the world.","publisher":{"@id":"https:\/\/www.infinitysolutions.com\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.infinitysolutions.com\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/www.infinitysolutions.com\/#organization","name":"Infinity Solutions","url":"https:\/\/www.infinitysolutions.com\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.infinitysolutions.com\/#\/schema\/logo\/image\/","url":"https:\/\/www.infinitysolutions.com\/wp-content\/uploads\/infinity-solutions-logo-no-tagline-200x57.png","contentUrl":"https:\/\/www.infinitysolutions.com\/wp-content\/uploads\/infinity-solutions-logo-no-tagline-200x57.png","width":200,"height":57,"caption":"Infinity Solutions"},"image":{"@id":"https:\/\/www.infinitysolutions.com\/#\/schema\/logo\/image\/"},"sameAs":["https:\/\/www.facebook.com\/infinityfinancialsolutions","https:\/\/x.com\/investmentasia","https:\/\/twitter.com\/investmentasia"]},{"@type":"Person","@id":"https:\/\/www.infinitysolutions.com\/#\/schema\/person\/a2ccb82ec7b4b1e79d5d970a104927ac","name":"Infinity Financial Solutions","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.infinitysolutions.com\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/19bd93e3f8e408d8b46efaf842f367410aeba6accb118db4d6e32ff12bcdd882?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/19bd93e3f8e408d8b46efaf842f367410aeba6accb118db4d6e32ff12bcdd882?s=96&d=mm&r=g","caption":"Infinity Financial Solutions"},"description":"A leading provider of expat financial services and wealth management services across Asia.","url":"https:\/\/www.infinitysolutions.com\/author\/infinity\/"}]}},"_links":{"self":[{"href":"https:\/\/www.infinitysolutions.com\/wp-json\/wp\/v2\/posts\/10724","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.infinitysolutions.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.infinitysolutions.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.infinitysolutions.com\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.infinitysolutions.com\/wp-json\/wp\/v2\/comments?post=10724"}],"version-history":[{"count":2,"href":"https:\/\/www.infinitysolutions.com\/wp-json\/wp\/v2\/posts\/10724\/revisions"}],"predecessor-version":[{"id":10727,"href":"https:\/\/www.infinitysolutions.com\/wp-json\/wp\/v2\/posts\/10724\/revisions\/10727"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.infinitysolutions.com\/wp-json\/wp\/v2\/media\/10725"}],"wp:attachment":[{"href":"https:\/\/www.infinitysolutions.com\/wp-json\/wp\/v2\/media?parent=10724"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.infinitysolutions.com\/wp-json\/wp\/v2\/categories?post=10724"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.infinitysolutions.com\/wp-json\/wp\/v2\/tags?post=10724"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}