Everywhere you look people are crying that the sky is about to fall. From Trump losing the US trade war, to the Australian housing market softening and the yield curve predicting the next recession is near as per The Economist’s video below.
What can happen in a recession?
The bad things that can happen during a recession are;
- Job losses
- Raises and wages cut
- Banks stop lending
- Housing market declines
- Stock market crashes
So why is this good for Millennials and Gen-Z?
Despite popular belief, Millennials and Gen-Zers are great at saving, in fact they are better than any other age group at putting aside dollars for a rainy day or an investment.
So, when a recession hits, cash will be king. Recessions can briefly level the playing field for this saving generation to pounce, if they are brave enough.