Is a Recession Inevitable?
I'm not sure. But it's looking increasingly likely. It's getting harder to see how the current environment doesn't slow economic activity.
Ben Carlson put together a great chart highlighting every instance since 1940 that the U.S. has experienced an inflationary spike of 5% or more. In each of these instances, there was a recession right away or shortly thereafter.
From an investing standpoint, it's important to note that the stock market is a leading indicator. By the time there's news breaking that we're officially in a recession, the pain will have already hit. We're checking that box as we speak.
This is context, not a crystal ball. Stick to a plan. Diversify. Be patient and consistent. Don't waste gains earned over decades with a bad decision in a moments notice. And if we do officially go into a recession, don't expect portfolio returns to mimic that same time line.
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Source: A Wealth of Common Sense: Are We Heading For a Recession?