The National Bureau of Economic Research (NBER) made it official and said that the longest economic expansion in US history ended in February at a record 128 months. While the NBER typically defines a recession as lasting “more than a few months,” it noted in the release that the pandemic caused a “downturn with different characteristics” than prior recessions. It went on further to say that the scope and magnitude of the decline in economic activity warranted the designation of a recession even if it ends up being shorter than the traditional definition of a recession or any other one for that matter.
Now that the NBER has made the recession official, as an investor, should you care? In a report just published, we looked at prior periods where the NBER formally declared a recession had started and looked at S&P 500 performance leading up to and after prior recessions announcements. For anyone looking for answers in how the NBER’s recession call could impact market performance, this report is a must-read. To see it, sign up for a monthly Bespoke Premium membership now!