3 Critical Lessons on Economic Recessions
It was early June when the National Bureau of Economic Research (NBER) announced that the coronavirus recession began on Feb. 20, 2020. The news didn't surprise anyone. Of course the economy had contracted -- that's what happens when much of the country shuts down temporarily to fend off a global pandemic. Households, too, were already feeling recession shockwaves, in the form of massive unemployment.
Still, knowing that this recession has been under way for months does add some important context. Given how recessions have historically behaved, that context can influence your investment approach for the remainder of 2020. Here are three critical lessons on recessions, and how to apply them.
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