Amid one of the longest economic expansions in recent American history, FPA member and CERTIFIED FINANCIAL PLANNER™ professional Scott A. Bishop can’t help but be pragmatic. While Bishop and his clients at STA Wealth Management in Houston, Texas, are enjoying the fruits of the current expansion, including steadily climbing equity markets and a robust job market, he’s been around long enough to sense the inevitability of the next economic downturn, which is why he recently penned a new article for his firm’s blog. It’s called “The Recession Survival Guide,” and it speaks to the growing possibility that sometime in the not-too-distant future — it could be months, it could be years — the current cycle will give way to the next recession.
The signs of an economic slowdown are too compelling to ignore, he says, noting in particular the historically unprecedented length of the current expansion (the National Bureau of Economic Research identifies it as the longest on record, beginning at the bottom of the Great Recession, in June 2009). That, coupled with other historical recession harbingers like an inversion of the treasury bond yield curve, weakening economies abroad and reduced investment by corporations, suggests it’s time for people to examine how their money and their assets are positioned, and take any necessary steps to ensure they will be protected when the next economic downturn arrives.