It's different every time. If you bought the top in 2007 then your portfolio crashed by 50% in 2008 and would take 6 years to recover. Answer from Majestic_Fox_428 on reddit.com
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Fidelity
fidelity.com › learning-center › wealth-management-insights › 3-things-to-know-about-recessions
What happens in a recession? | Fidelity Investments
March 11, 2025 - Since 1950, the US economy has experienced 11 recessions. The average length of a recession is 11 months, with the longest lasting 19 months and the shortest only 3.1 · What happens to the stock market in a recession isn't so cut and dry, either.
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Investopedia
investopedia.com › insights › recession-what-does-it-mean-investors
How Do Recessions Impact Investors?
February 7, 2023 - Investors react quickly to any hint of news—either good or bad—and the flight to safety can cause some investors to pull their money out of the stock market entirely. Because the wages companies pay workers and the prices they charge consumers are "inelastic," or initially resistant to change, cutting payrolls is a common response. Rising unemployment pushes consumer spending down even further, setting off a vicious cycle of economic contraction. A recession is generally defined as two or more consecutive quarters of a decline in real GDP.
Discussions

How does the stock market behave during a recession? And would it be different to the last recession?
It's different every time. If you bought the top in 2007 then your portfolio crashed by 50% in 2008 and would take 6 years to recover. More on reddit.com
🌐 r/stocks
83
69
December 22, 2023
A Recession May Be Coming. Or Not. Buy Stocks Anyway.
The title is correct. The BEST time to buy stocks is during the heat of a recession IF you have enough time for the market to correct. That being said, EVEN better advice for 99% of investors is "DO NOT TRY AND TIME THE MARKET". For the VAST majority of us, the best way to invest in stocks (broad based indexes) is just buy a fixed dollar amount on a timed interval (e.g. once a month) and don't change this plan, EVER. Dollar cost averaging over time will get you the optimal long-term gains over any other strategy. The other perk is, that you simply do NOT need to put effort into worrying/thinking about the market - its stress free. More on reddit.com
🌐 r/Economics
261
444
December 11, 2022
Are we being fooled in the name of an upcoming recession?

I would say we are in uncharted waters.

More on reddit.com
🌐 r/stocks
615
1021
October 16, 2021
If we do go into a recession how will it unfold most likely?

It will unfold with us losing money and the banks getting a bunch of money from the government.

More on reddit.com
🌐 r/stocks
92
61
January 18, 2021
People also ask

What are the stocks to watch during a recession?

There are various stocks worth keeping an eye on during a recession, including government bonds, gold and other commodities, indices, futures, options, consumer stocks and safe haven currencies.

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ig.com
ig.com › trading › thematic and basket › recession
Your Guide to Trading and Investing in a Recession | IG International
Can I short stocks during a recession?

Yes, you can. If you think a share price will depreciate during a recession, you’ll trade by selling (rather than buying) stocks using CFDs.

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ig.com
ig.com › trading › thematic and basket › recession
Your Guide to Trading and Investing in a Recession | IG International
What’s a recession?

A recession is an economic period when a country’s GDP (gross domestic product) drops by a significant amount over a lengthy period of time.

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ig.com
ig.com › trading › thematic and basket › recession
Your Guide to Trading and Investing in a Recession | IG International
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Al Jazeera
aljazeera.com › news › donald trump
What is a recession, and is it tied to stock market declines? | Donald Trump News | Al Jazeera
Trump’s tariffs prompt market drops, recession fears, and worries of accompanying inflation this time, warn economists. US President Donald Trump is seen on a screen as currency traders work at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Thursday, April 3, 2025 [Ahn Young-joon/AP] ... For weeks, stock markets have been falling, and the plunge accelerated after United States President Donald Trump on April 2 unveiled US tariffs on virtually every country.
Published   April 13, 2025
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Russell Investments
russellinvestments.com › us › blog › stock-market-us-recessions
How Does The Stock Market Typically Perform During U.S. Recessions? | Russell Investments
In 16 of the 31 recessions that have struck the U.S. since the Civil War, stock-market returns have been positive. In the other 15 instances, returns have been negative. We believe that a diversified, multi-asset portfolio can help investors better weather market drawdowns. Many investment strategists are forecasting that the U.S. economy could experience a recession in the next year or two. The end of the previous recession, the COVID-19 crisis, was April of 2020. The period from July of 2009 to February of 2020, 10 years and eight months, was the longest economic expansion on record.
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The Motley Fool
fool.com › investing › how-to-invest › what-to-invest-in-recession
What to Invest In During a Recession | The Motley Fool
2 weeks ago - Recessions often bring lower stock prices, which provide a buying opportunity for long-term investors. Invest regularly during recessions using dollar-cost averaging to minimize the risk and enhance returns. Avoid panic selling during market downturns to prevent locking in losses and to maintain ...
Find elsewhere
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TD
td.com › ca › en › investing › direct-investing › articles › what-is-recession
What is a recession and how is it defined?
Stock prices tend to decrease and market volatility tends to increase. As economic activity slows down, consumer spending declines and demand for many products and services decrease, resulting in lower revenues and profits for businesses. As revenue and profits begin to drop, investor confidence ...
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IG
ig.com › trading › thematic and basket › recession
Your Guide to Trading and Investing in a Recession | IG International
This means that you can trade both rising and falling markets – useful in a recession, when many asset classes’ prices drop. So, if you believe a market is set to lose value, you can take short positions on stocks, indices, forex, commodities, interest rates and more.
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Manulife John Hancock Investments
jhinvestments.com › viewpoints › investing-basics › what-happens-in-a-recession
What happens in a recession? — Manulife John Hancock Investments
But from a broader perspective, ... forces such as extreme optimism (which can lead to speculative behavior). Financial bubbles bursting (such as the stock market crash of ......
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Qtrade
qtrade.ca › en › investor › education › investing-articles › new-to-investing › concerned-about-a-recession-here-what-you-need-to-know.html
Concerned about a recession? Here’s what you need to know | Qtrade
During a recession, though consumers ... many investors become more risk averse. Therefore, asset classes that tend to have higher risk, such as stocks and commodities, have tended to perform poorly during recessionary periods....
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RJO Futures
rjofutures.rjobrien.com › home › rjo university › how a recession affects the stock market
How a Recession Affects the Stock Market - RJO Futures
August 13, 2025 - This is the million dollar question for investors. History shows us that the stock market during recession periods exhibits added volatility and performs a bit worse, on average, than in non-recession periods.
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Quora
quora.com › Can-you-explain-the-difference-between-a-stock-market-crash-and-a-recession
Can you explain the difference between a stock market crash and a recession? - Quora
Answer (1 of 4): #1. They Happen on Different. Time Frames…. Now, which One is First…. now thats the Real Question…. just like in 1929…. …. but they are somewhat Connected…. What came first… the Chicken or the Egg kinda thing…. Until we stop to think….
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Blueberry Markets
blueberrymarkets.com › market-analysis › how-does-the-recession-affect-the-stock-market
How Recessions Impact the Stock Market & Key Investment Strategies | Blueberry
August 5, 2024 - During a recession (when prices are rapidly falling), the stock market tends to undergo a period of continuous decline and heightened volatility. This happens for various reasons, such as decreased consumer spending.
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Wikipedia
en.wikipedia.org › wiki › 2025_stock_market_crash
2025 stock market crash - Wikipedia
November 11, 2025 - On April 2, which he called "Liberation Day", Trump announced sweeping tariffs impacting nearly all sectors of the US economy. The announcement triggered widespread panic selling across global stock markets. It became the largest global market decline since the 2020 stock market crash, which occurred during the recession caused by the COVID-19 pandemic.
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YouTube
youtube.com › watch
How To Protect Your Money In A Recession AND Not Miss The Next Market Upturn - YouTube
How to protect your money in a potential recession AND not miss the next market upturn - invest in T-Bills, money market funds, cash or stocks? Plus, what th...
Published   April 3, 2025
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Wikipedia
en.wikipedia.org › wiki › Stock_market_crash
Stock market crash - Wikipedia
September 15, 2025 - The S&P 500 and the Nasdaq each dropped by approximately 9.5%. The major European stock market indexes all fell over 10%. On March 16, 2020, after it became clear that a recession was inevitable, the DJIA dropped 12.93%, or 2,997 points, the largest point drop since Black Monday (1987), surpassing the drop in the prior week, the Nasdaq Composite dropped 12.32%, and the S&P 500 Index dropped 11.98%.
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NYTimes
nytimes.com › 2025 › 03 › 10 › business › stock-market-economy-tariffs-recession.html
Stocks Drop as Recession Fears Surface - The New York Times
March 10, 2025 - The S&P skidded 2.7 percent, amid investor fears that tit-for-tat tariffs could raise prices, slow the economy and sow uncertainty among businesses.
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Morningstar
morningstar.com › economy › what-weve-learned-150-years-stock-market-crashes
Stock Market Crashes: A Look at 150 Years of Bear Markets | Morningstar
December 2, 2025 - Seven years later, the stock market had almost gotten back to its previous level ($95.25) when the housing bubble burst and mortgage-backed securities began experiencing losses, leading to the Great Recession (in which the investment declined in value to $46).
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Nasdaq
nasdaq.com › articles › what-happens-to-the-stock-market-during-a-recession
What Happens to the Stock Market During a Recession? | Nasdaq
June 18, 2023 - When a recession hits, stock market returns usually drop like a rock. Beyond a falling portfolio, some may have to face a job loss during a recession. 2022 saw many publications and individuals predicting the NBER would call a recession sooner ...
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CNBC
cnbc.com › 2025 › 03 › 24 › how-investors-can-ready-their-portfolios-for-a-recession.html
How investors can ready their portfolios for a recession: 'You're looking for balance,' expert says
March 24, 2025 - Stocks have always recovered after bottoming out during recessions, Fitzgerald said. Missing those rebounds can be costly, he said. "I'd definitely urge people to tap on the brakes before making big shifts in anticipation of some market outcome," Benz said.