Financial analysts and economists have begun predicting a recession in the United States in the coming months due to numerous reasons, which include the steady rise of inflation figures, a decline in the worth of stocks and bonds, and the increase in layoffs at reputable companies. These changes in the economy and an impending recession are certain to elicit worry and anxiety among the population. However, Fragasso Financial Advisors is committed to instilling hope and making decisions based on time-tested investment philosophies even in these trying times.
Fragasso Financial Advisors is a leading Pittsburgh-based investment management and financial planning firm providing lifelong financial planning and investment advice. Following this commitment, Fragasso has curated a must-read article on its blog post that addresses the concerns of investors about the potential recession in the United States, highlighting the current factors that distinguish this economic period from past downturns.
In the Fragasso article, investors are advised to avoid rash and myopic decisions as the economy is insulated from recession shocks for many reasons, one of which is its well-capitalized banks. This is a result of the laws and regulations of the last decades, consisting of higher capital requirements and annual stress tests that ensured that banks could continue to lend, even during a recession. Furthermore, as valuations have been adjusted to reasonable levels after last year’s decline, the author highlights the increase in the yield of government bonds which is double the yield of bonds at the beginning of the year.
With Russia’s extended conflict in Ukraine and protests in China owing to a lockdown-inflicted tremor in its economy, the country’s largest rivals have their hands full and are unable to further worsen the economic standing of the United States in this sensitive period. According to the Fragasso article, other reasons for cautious optimism in the financial world are slowing inflation rates and a short supply of labor, to name a few. The blog post concludes by encouraging citizens and investors alike to simply expect a typical turn in the financial cycle and keep their hopes alive.
Please visit Fragasso’s financial blog, for more information detailing reasons for optimism despite a potential recession.
Investment advice offered by investment advisor representatives through Fragasso Financial Advisors, a registered investment advisor.
About Fragasso Financial Advisors
Fragasso Financial Advisors, Inc is a Pittsburgh-based independent, employee-owned, primarily fee-based investment management and financial planning firm established in 1972. A fiduciary, Fragasso seeks to make optimum recommendations for its clientele through unbiased methods and a cultivated interest in seeing clients’ assets grow. The firm represents over 2,000 households, consisting of individuals, families, businesses, institutions, and nonprofit organizations.
Fragasso Financial Advisors
610 Smithfield St #400