How Does the Stock Market Perform During a Recession? Here's What History Shows
We're probably already in a recession. The U.S. economy contracted for the second consecutive quarter, with the gross domestic product (GDP) falling 0.9% in Q2 after a 1.6% decline in Q1. Having two quarters in a row of GDP declines is widely viewed as the beginning of a recession.
Officially, though, the U.S. won't be in a recession until eight economists say so. These economists serve on the National Bureau of Economic Research's Business Cycle Dating Committee.
Investors won't wait until the official declaration of a recession to worry about the stock market. But how does the market perform during a recession? Here's what history shows.
Source Fool.com
