Probably scared or nervous about the upcoming recession? well. you should be. When was the last time you have seen a recession? maybe never. I am not talking about the stock market crash. The last stock market crash happened in 2021 because of covid. but we also have seen a V shape recovery. Will that happen again?
What is a recession?
A recession is a macroeconomic phrase that denotes a large drop in overall economic activity in a specific area. It was previously defined as two consecutive quarters of economic contraction, as measured by GDP and monthly indicators such as an increase in unemployment. so that you know what recession is. Let’s find out how will it impact the stock market.
Impact of recession
The stock market crash is a phobia. It has happened many times in history. Still, any time it happens, it causes anxiety and fear. Prices are meant to fluctuate, why not. Isn’t that a part of the Stock Market? OK, well coming back to the point.
How will it impact the stock market?
Prices will fall? well sort of but not exactly. Indexes will fall that’s one this for sure. Our indexes, nifty 50 and Sensex can see a dip. If you wanna know the levels, then learn technical analysis,
When indexes fall, stocks follow them too. however, here is a catch, Not all of them. Not all stocks copy the indexes. some might just start their ever waited for a bull run. You just have to look for it. Many sectors will be benefitted from this so-called recession in 2022.
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