Recessions & stocks
A recession is a broad, sustained decline in economic activity; stock prices often fall ahead of one and recover before it ends, because markets look forward.
A recession is a significant, widespread, and sustained downturn in economic activity — commonly marked by falling output, rising unemployment, and weaker spending. In the US, recessions are formally dated by the National Bureau of Economic Research rather than by a strict "two negative quarters" rule.
Stock prices and the economy are linked but not in lockstep. Markets are forward-looking, so share prices often fall before a recession is officially recognized and begin recovering while the economy still looks weak, anticipating the rebound. This is why trying to trade around a recession is so hard: by the time one is confirmed, much of the market move may already have happened.
stocks-llm helps you research individual companies with dated fundamentals; it does not forecast recessions or time the economic cycle. This definition is educational only.
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Informational only — NOT financial advice. This is an educational definition, not a recommendation to buy or sell anything. Metrics on stocks-llm are delayed data and may be missing or stale. Always verify information independently and consult a qualified financial professional before making any investment decision.