Great Recession

Article Index

What Is a Recession and Are We in One?

By , Associate Editor, Money Morning -

what is a recession

The Dow Jones Industrial Average is off nearly 13% from its May highs. And the Nasdaq is down 17% from its July highs. The steep drop in the major indexes has investors worried about a recession in 2016.

But first, what is a recession?

A recession is two consecutive quarters of negative economic growth, which is measured in gross domestic product (GDP). Our last major recession was in 2008.

And our expert, Shah Gilani, has reason to believe another one is coming in 2016...

Two Ways to Tell if the U.S. Economy is Ready to Get Back on its Feet

By , Chief Investment Strategist, Money Morning • @ShahGilani_TW -

The U.S. economy has been crippled by the financial crisis. And regardless of what policymakers try to do to spur growth, it will hobble along lamely until two major economic pillars are rectified.

Simply put, there's no chance that stock investors will see a healthy, long-term bull market until credit again begins to flow freely and home prices start rising.

Unfortunately, neither the credit market nor the housing market is yet ready to lead a sustainable economic rebound. But knowing that these are the two legs on which our economy stands, we can effectively gauge their condition, and thus be better able to predict a stock market rally.

Let me explain.

To find out how you can effectively diagnose the economic recovery read on...

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