We all know another recession is coming eventually. It’s part of the natural business cycle. The real question though, is how bad will the next recession be? Can we expect something as bad as the 2008 recession?
The short answer is most likely not. Overall, the 2008 recession was “generally terrible”. A typical recession will see a 30% drop in the S&P, while the 2008 recession saw around a 50-60% drop. We also saw a huge hit on GDP in 2008, 5.1 percentage points. In the past, we have seen GDP hit