Charlottesville financial adviser gives tips for planning for recession
CHARLOTTESVILLE, Va. (WVIR) — The U.S. economy has contracted for two straight quarters, leading some economists to question whether or not the country is in a recession.
To be in a recession, the National Bureau of Economic Research must classify it as such. The office did not do that.
Yet a Charlottesville financial adviser thinks we’re in a recession.
“It’s not technically, but traditionally, and in most people’s minds, two quarters of negative growth, what we’ve seen, is a recession,” said Emergent Financial Services CEO Alexander Urpi.
The country also faces high inflation.
“If inflation goes down, it will be good for people. But it could very well stay high even if we are in the middle of a recession, which would be a double whammy,” Urpi said.
Historically, Urpi says that falling prices are accompanied by a recession. This may not be the case.
“It’s important not to assume and say, ‘Oh, I can start spending. Prices will go down because we are in a recession. We don’t know yet if that will be the case,” he said.
One piece of advice from Urpi is not to sell: “Now is not the time to sell your 401k to try to buy things. So you’re going to want to make sure you keep that there. Do not sell. We always tell people not to panic and sell out of the stock market because the stock market is always looking to the future,” he said.
The last recession in the United States was caused by the coronavirus pandemic in June 2020.
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