In the previous episode of Financial Clarity for Doctors, Corey and Rachelle talked about stock performance year-to-date. Today they unpack one potential part of that decline – the fear of a “recession”. The dreaded “R” word. In reality, the stock market and the economy are connected but not the same. A recession is a measure of the growth (or lack thereof) in the economy, while the stock market is related to how much we as investors think a share of a company may be worth.
As pundits, corporate leaders, and individual investors start to fear a recession, the stock market can go down in anticipation of a potential decrease in business revenue. But what is a recession really? And what might that look like today?
In this episode Corey and Rachelle discuss:
- How a recession is defined and measured
- How individuals can be affected by a recession
- Which things are worth worrying about and which are not
- How to offset some risks associated with a recession for yourself and your family
In the end, we care about how the economy is faring, but the impact on individuals is sometimes very small. Medical professionals are often more insulated from some of the bigger risks of a recession including job losses. Try to keep things in perspective and focus on the things you can control.
For more financial planning tips from Corey and Rachelle, find them on social media!
LinkedIn: @CoreyJanoff and @RachelleVanderzanden; Instagram: @CoreyJanoff and @VanderzandenRachelle; and Twitter: @CoreyJanoffCFP and @RachelleFinance
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