The Recession Watch Indicator is an economic tool that predicts the onset of recession months in advance. The RWI indicates a “high” risk of recession in the coming months, with continued financial weakness expected to translate into lower stock prices. Economic recessions are often accompanied by severe stock market declines of over 20%.
Recovering from significant losses can be challenging and stressful, so I closely monitor the natural rhythm of business cycles and remain vigilant for economic turning points. For retirees, avoiding market declines caused by recessions is essential for a stable retirement lifestyle.
I will cover in detail the leading indicators in Saturday’s Videocast.