Betting on the Bull or the Bear? (Forbes)
KSU professor gives upbeat assessment of economic conditions
KENNESAW, Ga. (Jan 16, 2017) — The 2008 recession officially ended in June 2009. Yet over seven years later, people still ask, “When we will get back to normal?” In the 2016 elections, both Donald Trump and Bernie Sanders focused on the “low-growth economy” and how to get America back to a robust growth pattern.
Professor Roger Tutterow, of the Econometric Center, Coles College of Business, at Kennesaw State University, had an interesting perspective. He delivered a fairly upbeat assessment of overall economic conditions, along with the normal caveats.
For those who will say in June 2017, “we are eight years into an expansion, we must be due for a recession,” Tutterow notes that recessions are not based on a clock. From 1945 to 2009, the economy went through 11 cycles with the average contraction 11.1 months and the average expansion 58.4 months.
Looking at the U.S. stock market run-up after the Trump victory, the professor advised, “Don’t confuse the stock market with recession risk,” which he sees as a bit higher compared to two years ago. If we get a recession in 2017 or 2018, strategies should be in place that would allow you to buy stock during dips, or if retired, have sufficient reserves to preclude selling stocks at market lows.
A leader in innovative teaching and learning, Kennesaw State University offers more than 150 undergraduate, graduate and doctoral degrees to its approximately 38,000 students. With 13 colleges on two metro Atlanta campuses, Kennesaw State is a member of the University System of Georgia and the third-largest university in the state. The university’s vibrant campus culture, diverse population, strong global ties and entrepreneurial spirit draw students from throughout the region and from 92 countries across the globe. Kennesaw State is a Carnegie-designated doctoral research institution (R2), placing it among an elite group of only 6 percent of U.S. colleges and universities with an R1 or R2 status, and one of the 50 largest public institutions in the country. For more information, visit kennesaw.edu.