In the most recent wave of Logica’s “The Future of Money” financial market research, we uncovered that more than three quarters of Americans have concerns about the potential of a recession. And as the recent stock market falls steeply, The Washington Post reports on some consumer activity that mirrors our findings—noting that Americans are reigning in spending and even cancelling holiday travels. The article states: “The last time Americans saw such sweeping and shockingly fast market losses was during the financial crisis, and those memories are still fresh in many people’s minds.”
Until the coronavirus hit, many economists were drawing back from predictions of a recession, but now that the virus made American soil and impacted the market, recession talk is back in the spotlight. In the article, Edward Al-Hussainy from Columbia Threadneedle Investments, says, “The odds of a recession are roughly a coin toss, and that’s exceptionally high.”
With financial services organizations experiencing a drastic increase in customer service calls in the wake of the market dip, the article points out that these experts are continuing to “stress to clients to get a good financial plan” in place. Our research showed many Americans are doing just that, by setting aside money, identifying places to eliminate expenses, and changing their investment strategies to protect or grow their assets. And these behaviors may increase as the virus spreads and the market remains unpredictable.