Chances are that if you invested at any point during the Great Recession, you’re sitting pretty right now, assuming you’ve held onto your positions. The U.S. economy is in the midst of its second-longest economic expansion in history, going back 161 years. And since the market bottomed out in March 2009, investors have witnessed all three major stock indexes at least quadruple in value at one point. It’s been a truly unique ride — and chances are it’s going to come to an end sooner rather than later.
To be perfectly clear, trying to predict when recessions will occur is pure guesswork. Top market analysts have called for pullbacks in the market, unsuccessfully, in pretty much every year since the Great Recession ended. But the economic cycle doesn’t lie: recessions are inevitable. And in my estimation, we’re probably closer to the next recession than you realize.
How can I be so certain? Well, I can’t. Remember, I just noted there’s virtually no certainty when it comes to predicting when recessions will occur. There are, however, six warning signs that suggest a recession could be, in relative terms, around the corner.