It is called an economic cycle for a reason. Short-term growth trends can only stay in place for so long. Eventually growth peaks and leads to a slowdown. The slowdown oftentimes leads to negative growth (recession), which could be mild or severe but also serves as a reset, and the cycle starts over as a recovery occurs. So where are we in the current cycle?  

The current economic expansion is one of the longest in U.S. history, now 9+ years running, so one of the questions that seems to be making headlines daily is “when is the next recession?” Then, it is usually followed by investors asking “… and what do we do about it?” Let’s deal with each of these questions separately.

While it’s difficult to accurately predict the timing of the next recession, the following are 3 reasons we believe recessionary conditions may still be several quarters (or possibly years) away.