Economic Downturn Alert: Are We Overdue for a Recession

(Newswire.net — May 1, 2018) Mesa, AZ — History does repeat itself and when it comes to the economy, the numbers have never lied. The United States economy is overdue for a correction.

The stock market increases over the past 7 years have been nothing short of spectacular. Job growth has been steady. Equally important, housing has regained and exceeded the major equity losses of 2008.

Are these indicators cause for celebration or caution?

As it turns out, both.

Historically speaking, our economy has across the board corrections every 7 years. These corrections may have been 7-10 years apart, but since the industrial revolution we have always seen an adjustment after a segment of solid growth.

According to the International Finance Review, historical economic downturns have created a roadmap for us to follow. Long term investors have seen and embraced these swings as a natural part of the economy. Fund managers often anticipate and shift entire portfolios to protect their investors against volatile market swings.

Individual investors, however, often mistake these signals and do the exact opposite of what the ‘smart money’ does. When things are rising, smart money banks their gains and profits. When things are down, they buy bargains.

It is a counterintuitive approach and can be emotionally challenging to buy when things are declining. “When will it hit bottom?” “Will it go up again?” are common, emotional thoughts that keep average investors on the sidelines. While corporate giants have the ability to borrow heavily, issue stock and otherwise weather these storms, small businesses and entrepreneurs are not fortunate.

What should local businesses do?

Thankfully, in the case of small businesses, there is a 3rd approach to riding the wave of market volatility.

Isaac Navias, from Navias consulting helps businesses do more than ride out these waves, he specializes in building client foundations so strong, a business can flourish in any economy. “We’re a supporter of local businesses, helping them bring in fun, friendly and excited new customers every day in order to build an even better community,” stated Navias.

Navias’ words are backed up by monetary evidence, as well.

“One of our clients, a dentist in Mesa, was doing well in his practice, but realized there was room for growth. Rather than focusing on his budget, the economy or when is a good time to expand, we established a plan to capture new patients on a consistent basis. In the first year, he captured over $200,000 in new business,” stated Navias.

Perhaps, instead of worrying about cutting back on marketing, local businesses may consider ignoring the economy and focusing on acquiring a steady influx of clients.