A recession is an economic environment that is characterized by a sustained decline in economic activity, depressed consumer and business sentiment and a relatively high level of unemployment. Periods of high inflation can also be a telltale sign of a recession.
While there is no exact way to quantify the moment a recession occurs, economists often say a telltale sign is when there are two consecutive quarters of negative growth of gross domestic product (GDP).
If you notice this trend, you’ll want to take a look at your strategies for investing during high inflation.