You’ll Be Shocked To Learn What Happens After A Recession Ends

The United States may be better off than you think. Currently, the big concern and preoccupation for people is whether or not the U.S. will be heading into a recession. It’s the big boogeyman hiding in the closet that people are all supposed to be afraid of.

Of course, it’s not pleasant when the economy contracts and people lose their jobs, savings and investments. However, you can’t simply look at the job market, economy and financial markets in a snapshot picture. There are ebbs and flows over time. Short term, the situation may look bleak. Looking over the horizon, everything could turn around, as history has proven.

Recessions Create Opportunities

Many well-known, fabulously successful companies were started during recessions and economic downturns. Recessions, stock market plunges and periods of high unemployment occur relatively regularly. It’s baked into the system. The U.S. economy swings like a pendulum in boom and bust cycles. For context, if you are a Baby Boomer, you have lived through nearly a dozen recessions.

Now-Famous Companies That Started Out In A Recession

  • Hewlett-Packard (1937-1938 Recession)
  • Hyatt Hotels (1957-1958 Recession)
  • Microsoft (1973-1975 Recession)
  • Electronic Arts (1981-1982 Recession)
  • Mailchimp (2001 & 2009 Recession)
  • Uber (2007-2009 Recession)
  • Airbnb (2007-2009 Recession)
  • Slack (2007-2009 Recession)
  • Warby Parker (2007-2009 Recession)
  • Venmo (2007-2009 Recession)

Why Are Businesses Started During Downturns?

During a downturn, people lose their jobs. With a lack of available options, a laid-off worker who harbored dreams of being an entrepreneur now doesn’t have any excuses to wait any longer. There is a feeling of, “It’s so bad that it can’t get any worse, so I might as well take the shot.”

As other people are downsized, you may be able to recruit talent for your emerging enterprise. When the economy craters, it creates new opportunities for budding business owners to solve new problems.

Stock Market Crashes And How Long It Takes To Recover

In 1929, the stock market crashed and the U.S. entered into the Great Depression. Without the public assistance Americans have access to now, families were left helpless. Wall Street professionals who lost their life savings had to panhandle for food. The stock market kept falling for a few more years and hit rock bottom in 1932. The market tumbled more than 80% lower than its all-time highs. It took over 20 years to recover.

In 1987, the “Black Monday” October crash happened. Similar to present-day events, a long bull-market run that kept the stock market moving higher without any corrections to cool it off ended badly, plummeting 22.6%. It took roughly two years to make a comeback.

In the late 1990s into 2000, the U.S. endured the dot-com boom and bust. Speculation in the newly emerging tech sector reached a fever pitch. Stocks were priced at ridiculously high levels based on the euphoria that these new tech darlings would change the world overnight.

Instead of valuing companies based on traditional price-to-earnings metrics, Wall Street research analysts pointed to the number of clicks a website received as evidence that the tech company was a terrific buy. However, the bubble ultimately burst in March 2000. The S&P 500, a benchmark used to gain an overall perspective of the financial markets, cratered—free falling more than 50% from its highs. It took about seven years to recover.

Shortly after the dot-com burst, there was another bubble emerging. In 2008, banks made reckless loans that enabled people to purchase homes that they couldn’t afford, if the economy cooled down. The U.S. had a housing bubble that lead to a subprime mortgage crisis. Sure enough, when the adjustable interest rates kicked in, families couldn’t make the higher monthly mortgage payments. Many lost their homes. The S&P 500 lost nearly half of its value. Around two years later, the market climbed back.

At the onset of the Covid-19, the stock market plunged more than 30% in February to March 2020. In this case, due to interventions by the U.S. federal government and Federal Bank actions, it only took about six months to climb back up again.

After all the gyrations, the end results were largely positive. You would have come out ahead if you were brave enough to invest during these difficult times. For example, a small investment of $100 in the S&P 500, at the beginning of 2009, would have represented a 582.13% return on your investment by the 2021 year-end.

It’s hard to come to grips with the economy and stock market vicissitudes. Recessions happen on a regular basis, as it’s part of the capitalistic cycle. The U.S. may need to endure some rocky times for the foreseeable future. However, if history repeats, it may take some time, but Americans will soon see better days.

What’s likely to happen is that after a few years, the government and Fed will forget about the past and enact more accommodative policies that will lead to another bull run, which will go to excess and ultimately burst. Then, the cycle will start all over again.

I am a CEO, founder, and executive recruiter at one of the oldest and largest global search firms in my area of expertise.

Source: You’ll Be Shocked To Learn What Happens After A Recession Ends

Related contents:

A full stop to Russian gas could plunge Europe into a full-blown recession Natural Gas World


More Remote Working Apps:     Quintex Capital   Genesis Mining   BevTraders  LiteTrading   Alpari Forex Trading   Dealcheck Real Estate Evaluator  prime stocks  forrk  keysearch  gluten free  diet fitness diabetes  writing job  postradamus  stoodaio  profile mate  senuke   asin  appimize  super backdrop  audiencetoolkit  4brandcommercial  talkingfaces  socifeed  gaming jobs   backlinkindexer  powrsuite  tubeserp  PR Rage  design beast  commission smasher  MT4Code System  viral dash  coursova  fanpage  forex expert  appointomatic  woocommerce  domainname  maxslides  ada leadz  eyeslick  creaitecontentcreator  vidcentric  studioninja  marketingblocks  clipsreel  VideoEnginePro  BarclaysForexExpert  Clientfinda  Talkingfaces  IMSyndicator  SqribbleEbook  superbackdrop  VirtualReel  MarketPresso  voiceBuddy  tubeTargeter  InstantWebsiteBundle  soronity  DFY Suite 3.0 Agency+ information  VideoRobot Enterprise  Klippyo Kreators  ChatterPal Commercial  WP GDPR Fix Elite Unltd Sites  EngagerMate  VidSnatcher Commercial  myMailIt  Storymate Luxury Edition  iTraffic X – Platinum Edition  Content Gorilla One-time  Push Button Traffic 3.0 – Brand New  SociCake Commercial  The Internet Marketing  Designa Suite License  XFUNNELS FE Commercial  ShopABot  Inboxr  MediaCloudPro 2.0 – Agency  MyTrafficJacker 2.0 Pro+  AIWA Commercial  Toon Video Maker Premium  Steven Alvey’s Signature Series  Fade To Black  Adsense Machine  Diddly Pay’s DLCM DFY Club  CourseReel Professional  SociJam System  360Apps Certification  LocalAgencyBox  Instant Website Bundle                                  GMB Magic Content  PlayerNeos VR  BrandElevate Bundle information BrandElevate Ultimate WowBackgraounds Plus  Your3DPal Ultimate  BigAudio Club Fast Pass Podcast Masterclass  VideoGameSuite Exclusive AffiliateMatic  YTSuite Advanced  Xinemax 2.0 Commercial  Living An Intentional Life  BrandElevate Bundle Ezy MultiStores  DFY Suite 4.0 Agency  ReVideo  AppOwls Bundle  TrafficForU  WOW Backgrounds 2.0   ALL-in-One HD Stock Bundle   Viddeyo Bundle  The Forex Joustar ADA Web Accessibility Compliance  10 Bold Actions In Positive Life & Work  Adtivate Agency   My Passive Income Blueprints  Content Tool Kit    ReviewReel     QR Verse Bundle    VIADZ Ad Template    EngageYard Ad Creator   Videevolve  Local Leader Bundle   Tonai Voice Content   Vocalic Commercial  Dropshiply Store Creator  Levidio Royal Podcasting  Develop Self Empowerment   Hostley Domain Creator   Mech Forex Robot   Motion Kingdom Studio   Forex Blizz Trading  AdRaven   Animaxime V2  Promovidz Promotion Videos  AffiliateMatic  CanvaKitz Business Templates  Agencyscale Business Agency  Pitchdeck Professional Presentations   YTSuite YouTube Ads Campaigns     Living an International Life    Galactic Dimension backgrounds    Xinemax Hollywood Creator   DFY Suite 4.0 Agency    Appowls Mobile Apps   Ezy Multi Stores  TrafficForU  WOW Backgrounds   Your 3DPal   Forex Joustar   Ultrafunnels A.I   DUX Forex Signals   Trendio Keyword Content  FX Goldminer  Linkomatic  Pixal 2.022   VidVoicer   Big Audio Club  Podcast Advantage  Reputor  TubePal  Local Sites   PodKastr Commercial Insta Keyword   Facedrip  7 Minutes Kit  Aweber Crash Course   WP Simulator  Podcast Advantage  Boost Optimism   Superior Muscle Growth


Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

%d bloggers like this: