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Recession ???

• Posted by Dejan Pekic BCom DipFP CFP GAICD, Senior Financial Planner

Clients have been asking us if Donald Trump and his Tariff War is going to cause a recession in the United States.

The actual answer is that we do not know.

The latest probability for a recession in the United States sits at 23% likely which is low and down from last year.

Similarly, Australia is at 20% likely.

Click for charts.

Staying in cash and waiting for a recession in our experience almost always fails because the investor is not growing their assets against inflation while they wait.

Our response is to remain invested according to your appetite for risk and then react when the recession does occur because it will present an opportunity to buy more quality assets at a discounted price.

Our business is based on referrals, so if you have family, friends or colleagues that want advice please ask them to contact us.

At Newealth we are always looking to support and promote our clients wherever possible and if you have any ideas or comments, please feel free to email me or to call me on +61 2 9267 2322.