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0.5.1

Recessions

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The average recession since 1945 has lasted nearly 11 months with a median GDP decline of 2.4%. Through the end of July 2019, the United States has been in a recession 130 out of 895 months in total. This means the economy has been in a recession roughly 15% of the time over the past 75 years or so.

Looking at this another way, 85% of the time the economy is in a state of expansion. The problem for investors is most of us spend 85% of our time focusing on events that happen 15% of the time instead of the other way around.

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