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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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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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How the US Debt Ceiling Will Impact the Stock Market
May 25, 2023
Will the US debt ceiling cause a crash in the Indian stock market? Find out...
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Wipro Share Buyback: To Participate or Not?
Apr 28, 2023
The IT major has announced a big share buyback worth Rs 120 billion. Here's all you need to know about it...
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Why Infosys, TCS, HCL Tech and Other IT Stocks are Falling
Apr 12, 2023
Before Indian IT stocks declare their Q4 earnings, take a look at the probable reasons why they're under pressure and what lies ahead...
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Will the US Banking Crisis Cause a Bull Market or Bear Market in India?
Mar 15, 2023
What kind of impact will the current US banking crisis have on the Indian stock market?
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What You Can Learn from the Great Crash in Tech Stocks
Nov 24, 2022
Tech stocks crashed. What lesson is the market teaching us?
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Charts Suggest IT Index Has Bottomed Out. Here are Top IT Stocks to Track Now
Nov 11, 2022
The Wyckoff bottoming formation and the Last Point of Support (LPS) is in place for Nasdaq. This could have an immediate impact on Indian IT stocks.
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How the Global Recession Could Impact India. 5 Companies to Watch Out For...
Oct 27, 2022
Looking for stocks to buy in a global recession. Here are our top pics...
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Why Wipro Shares are Falling
Oct 13, 2022
So far in 2022, Wipro shares are down a whopping 46%. This is why.
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TCS Announces Second Interim Dividend. 5 Takeaways from TCS Q2 Results
Oct 10, 2022
The company's operating margin stood at 24%, a contraction of 1.6% YoY while it also declared a second interim dividend.
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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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This Fund Manager Generated 30%+ returns for Over 30 Years. Here are His Top Picks and Avoids in the Current Market...
May 11, 2023
This billionaire investor recently shared his views on the current economic situation, US dollar, gold, China, and more.
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Which Stock Looks Better on the Chart? Infosys or TCS
Apr 19, 2023
Infosys posts biggest fall since Covid. How long before the fallen angel finds its mojo back?
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3 Reasons Why Gold Price is Rising
Apr 5, 2023
These reasons explain why the gold price is at an all-time high.
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4 Reasons Why FIIs Are Selling Indian Stocks
Feb 10, 2023
This is why foreign investors are dumping their Indian shareholdings.
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Nifty 20,000: A Cheat Sheet
Nov 17, 2022
What should you do as an investor when the Nifty reaches 20,000?
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Why Tech Mahindra Share is Falling
Nov 10, 2022
With talks of global recession, companies have cut back on their spending on technology, which is hurting Indian IT companies.
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How to Pick Recession Proof Stocks
Oct 13, 2022
Is it possible to find recession proof stocks? Yes it is. Here's how...
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HCL Tech Declares Third Interim Dividend. 5 Takeaways from HCL Tech Q2 Results
Oct 12, 2022
The key highlight for this quarter was HCL Tech raising its revenue growth guidance for financial year 2023.
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Bulletproof Businesses to Counter the Market Mayhem
Sep 28, 2022
These firms emerge stronger from crises that typically decimate their competition.
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