What is the Dow Jones Industrial Average?

With the stock market hitting all time highs each day, investors are wondering if a recession is imminent. Some predict a recession is going to happen in 2020 while others think a recession will occur before year-end 2019. First, let’s define what a recession is and what it is not. By definition, a recession is two consecutive quarters of negative GDP (Gross Domestic Product). A recession is not a sharp decline in the stock market or consecutive months of negative returns in the stock market. The stock market is only one of many leading economic indicators. So how can we spot the next recession before it happens and protect our portfolios? The short answer is you cannot predict the market or the economy, but you can monitor key economic indicators to see where we are in the business cycle. The business cycle is the natural progression of the economy and consists of four phases: expansion, peak, recession, and recovery. Knowing where we are in the business cycle helps us make informed investment and business decisions. Below are explanations of each phase in the cycle in their order of occurrence.  

In each episode of ACap ReCap, we go beyond the blog to answer your financial questions. Ara & Matt Crisafulli discuss cannabis stocks, and whether or not it's a good investment.

Markets have been extremely volatile in the last few months, and while it’s true that volatility is normal and even healthy, it doesn’t necessarily mean it is a welcome occurrence for everyone. However, that unpredictability can be used as a tool to help you evaluate your true risk tolerance to prepare yourself and your portfolio going forward.

By now you have probably heard about Brexit, the successful vote by British citizens to exit the European Union and the immediate reaction of the global financial markets.