Charlottesville financial advisor gives advice to plan for recession
CHARLOTTESVILLE, Va. (WVIR) - The U.S. economy has shrunk for two quarters in a row, which is causing some economists to debate whether or not the country is in a recession.
To be in a recession, the National Bureau of Economic Research has to classify it as such. The bureau has not done that.
Still, one Charlottesville financial advisor believes we are in a recession.
“It’s not technically, but traditionally, and in most people’s minds, two quarters of negative growth, which is what we have seen, is a recession,” Emergent Financial Services CEO Alexander Urpi said.
The country is also dealing with high inflation.
“If inflation does go down, that will be a positive for people. But it could very well stay high even though we’re in the midst of a recession, which would be a double whammy,” Urpi said.
Historically, Urpi says lower prices come with a recession. That might not be the case.
“It’s important to not assume and say, ‘Oh, I can start spending. The prices are going to come down, because we’re in recession.’ We don’t yet know if that’s going to be the case,” he said.
One piece of advice Urpi has is do not sell: “Now is not the time that you want to be selling your 401k to try to buy items. So you’re going to want to make sure that you’re keeping that there. Do not sell. We always tell people don’t panic and sell out of the stock market, because the stock market is always forward looking,” he said.
The last recession in the U.S. was caused by the coronavirus pandemic in June 2020.
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