Is The American Economy on the Brink of a Recession?!

Chris explains why recessions—those two quarters of negative growth—can actually cleanse our economy by eliminating inefficiencies and waste. He discusses how Trump's efforts to cut government spending and deregulate could pave the way for a robust recovery, while cautioning against trying to time the market. Instead, he advises a disciplined, dollar cost averaging approach during these turbulent times. www.watchdogonwallstreet.com

Episode Transcript

Speaker 1 (00:00):
The Watchdog on Wall Street podcast explaining the news coming
out of the complex worlds of finance, economics, and politics
and the impact it we'll have on everyday Americans. Author,
investment banker, consumer advocate, analyst, and trader Chris Markowski.

Speaker 2 (00:16):
Recession twenty twenty five. Is there a recession coming down
our way? Something wicked this way comes and is it
really wicked? I've talked about recessions over the years, because again,
most people don't understand what a recession even is. Quite frankly,
what the technical technical term is for recession is two

(00:41):
quarters of negative economic growth in a row. Now, we
had that a couple of years ago, and for whatever
reason it may be, the high priests at the National
Bureau of Economic Research said, no, nothing to see here,
It's okay anyway, not neither here nor there. They're the
ones that actually make that call. I, for one, I

(01:04):
think when all is saiden don we're going to be
able to look at back over the past several years
when we actually get some more honest economic numbers, and
I think we've been could have been in and out
of a recession on several occasions. I don't buy into
a lot of what we're being told not to mention
the fact that when so much of our GDP is

(01:28):
based upon government bowering and spending, that's not real to me. Okay,
that's a fugazy economy. What does that mean going forward?
Now that Donald Trump is making a great attempt to
cut government down to size, to reduce all sorts of
nonsensical government spending. Again, you're getting the pearl clutch. Liberals

(01:53):
out there warn't, oh my god, this could cause a recession.
So I mean, honest, I could care less. You know,
sometimes sometimes in life you have to take a couple
steps backwards to take many steps forwards. I have described

(02:13):
recessions like the lymphatic system of the human body. Recessions
are times when you get out all of the inefficiencies,
all of the gunk economic plus that's out there, all
the waste, all the frauds. Okay, again, the tide goes

(02:38):
out in recession, you see all the companies that have
been swimming naked, and they get eliminated, and you can
move on. For that, I want to remind everybody, you know,
what happened at the early stages of the Reagan presidency.
They had a pretty deep recession but things took off.

(03:02):
How Donald Trump is going to handle this twenty twenty
five recession, which I think is a possibility now again,
I want to let me know, change away. I'm doing anything.
Change away. We're managing our client's money. We're always prepared
for a recession that you're supposed to be anyway, neither
here nor there. He gets his tax cuts into place,

(03:26):
we can reduce regulation, all of those things. You're going
to get a real fast, a real fast turnaround, and
you're going to see you're going to see a major
takeoff from there. And again there's a lot, a lot
that we have to deal with right now. Again, I'm

(03:49):
not sure what to make heads or tails out of
Republicans in Congress. They're kind of nodding along right now.
But again, Donald Trump is going after many of their
their sacred cows and spending programs. Oh yeah, they you know,
they're into this whole us A thing too. We've explained

(04:09):
that the ability for Trump to get and push his
agenda forward, deregulations, tax cuts. I don't like what I'm
hearing now. The fact that they again they with the
tax cuts, they want to make them like again they
expire that's I don't like that. I'd rather see I'd

(04:29):
rather see government actually be honest rather than tax cuts expiring.
I'd rather them saying, Okay, we're going to raise your
taxes and be honest. That's kind of a built in
that Washington d C. Puts in. But again you again, recession.
Not to worry again. Two quarters of negative economic growth,

(04:49):
no big deal. And quite frankly, I think we're going
to see adjustments the past where we probably were in one.
It's it's what we do during that recession and over
the next couple of months that's going to take us
past it and through. And I want to remind everybody
as well, anticipating and guessing recessions and trying to trade

(05:13):
them not a good idea, Not a good idea at all.
You've got to do things the Markowski way, where your
dollar cost averaging every single month, not trying to get
into the market and try to get out of the market, because,
believe it or not, during recessions, stock markets tend to
do very well because they anticipate coming out of the recession.

(05:37):
Watch Dog on Wall Street dot Com