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Investment in securities market are subject to market risks. Read all the related documents carefully before investing
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Recession
A recession is a period when the economy of a nation contracts. In other words, business activity shrinks instead of expanding.
In economics, a recession is generally a period of at least two consecutive quarters of negative GDP growth. They are usually preceded by a period of strong economic growth, over investment, and over consumption.
During a recession, the GDP of an economy falls, income levels of people go down, there is an increase in unemployment, along with a decrease in industrial production and consumption.
It's a financially difficult time for a most of the population.
Economic indicators that could point to a recession are closely watched by governments and economists. Yet it's not easy to predict a recession in advance.
This is due to the fact that large economies are also very complex. It's not always possible, even for economists, to identify the factors that will trigger a recession.
However, once a recession hits, it's obvious to everyone.
Recessions can be short (less than a year) or long (a few years). They can also be deep (huge declines in GDP) or shallow (small declines in GDP). Long recessions can even have periods in between with short-lived positive GDP growth.
It's important to understand that recessions are a normal part of economic activity. Every boom phase in an economy is followed by a bust.
Recessions cause inefficient businesses to shut down. Banks reduce their lending and tighten their credit policies. Companies reduce their fixed costs and become more efficient.
The pain caused by recessions is temporary as the economy bounces back. Businesses emerge stronger with low debt, strong balance sheets, and good cash flows.
However governments don't like recessions. This is due to the high unemployment that it causes. They tend to intervene with policies to stimulate the economy. These include low interest rates and higher spending on infrastructure and social projects.
In recent times governments and central banks have directly infused money into economies by sending cash to people's back accounts and buying corporate bonds.
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5 Recession-Resistant Dividend Stocks to Add to your Watchlist
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5 Companies with strong cash flows and resilient businesses that continue rewarding shareholders even during economic slowdowns.
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3 Stocks to Ride Over Tariff Uncertainty
Apr 18, 2025
Instead of trying to guess who might win or lose from tariff wars, I believe it's better to focus on companies that can stand strong through it all.
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5 Recession Proof Stocks to Add to Your Watchlist
Apr 8, 2025
The recent tariff escalations have intensified fears of a global recession. Let's look at 5 stocks that could hold their nerves even if there's a recession.
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Gold or Silver: Which Precious Metal are You Buying this Diwali?
Oct 26, 2024
Will gold and silver continue to rise? Find out...
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Why is the Stock Market Falling?
Aug 5, 2024
Three reasons why the Indian stock market is falling.
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Why Gold Price is Rising
Mar 6, 2024
The price of gold is on the rise. Find out why...
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Can the Stock Market Crash in 2024?
Nov 24, 2023
How should you think about a potential market crash in 2024? Read on...
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Why the Indian Stock Market is Falling
Oct 26, 2023
These are the reasons why the stock market is declining.
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Should Long Term Investors Worry About Recession and Inflation?
Jun 23, 2023
How events like recession and inflation impacts the portfolios of long term investors.
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US Debt Ceiling Saga at the Final Stretch. What Happens Next?
May 31, 2023
The US government has finally reached its debt ceiling. How will the markets react next?
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5 Tariff-Free Stocks to Safeguard Your Portfolio from Tariff Risks
Aug 8, 2025
Five solid Indian companies with minimal exposure to global trade tensions, built to keep your portfolio steady when tariff risks spike.
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How Will Trump's 104% Tariff on China Benefit Indian Stocks?
Apr 9, 2025
Which Indian companies could benefit from the US China trade war? Find out...
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Prediction: Here's Where the Gold Price is Headed in 2025
Nov 14, 2024
Will the price of gold rise or fall? Find out...
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Is a Stock Market Crash Coming in 2024?
Aug 13, 2024
Will the stock market fall into a bear market this year? Find out...
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Biggest IPO of 2024, Update on Tata Electronics Chip Plant, and a New AI Tool for Faster IPO Approvals
Aug 3, 2024
Next week is a crucial one as worries grow in the US market over slowdown and recession concerns.
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Indian Share Markets Could Face These 3 Big Risks in 2024
Jan 21, 2024
What can cause the stock market to crash in 2024? Find out...
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Why Crude Oil Prices are Falling
Nov 20, 2023
Two reasons for the dip in oil prices and its outlook.
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Nifty 20,000: What Happens Next?
Sep 13, 2023
How to trade and invest after Nifty 20,000.
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Why Mphasis Share Price is Falling
Jun 7, 2023
Midsized IT firms are facing strong headwinds and Mphasis is no exception. How long before the stock recovers?
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World's Fourth Largest Economy Enters Recession. Is a Crash Coming Soon?
May 29, 2023
Is the stock market in danger of crashing after Germany's announcement of recession.
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