How To Know In Advance When The Economic Recession Will End

Ask two different economists when a recession will end, and you’re likely to get four different answers. That’s right, they don’t really know – at least not in advance. But despite this, I am going to show you a very simple way to find out for yourself when a recession will end.

Knowing anything in advance would be a blessing – from the birth date of your first child to the winning horse at the race track. But imagine if you could see into the future and tell when an economic recession would end? Your business would soar, your job offers would multiply, and you would be ready for it all.

Telling when an economic recession will end can be easy. Especially as this method has been proven over the recessions of the last century.

It is something that you can easily research at home, and something even your kids would be able to discover quite simply.

And this is where we look to the stock market for the answer – as Ken Fisher outlined in his book, “The Wall Street Waltz”, the stock market has a magical way of leading the overall economy. Fisher discovered that the stock market will start going up before the end of an economic recession is announced.

Let’s look at an example: Half way through 1948, the market topped and started to decline. It wasn’t until 1949 that the recession “hit” consumers. Then, just when people were despairing that it might last forever, the began an upward climb half way through 1949, and in 1950 the recession was declared over.

Another example: 1952 and the stock market had begun its decline. Not until half way through 1953 was a recession actually declared. Another score for the stock market!

During every recession going back over the last century, the stock market has predicted an end to economic recession. In most cases the stock market leads the economy by six months. Yes there are some where the time-frame is more or less, but six months was the average.

How can you use this? Well, you can bet in your lifetime there will be another economic recession. But this time, when it happens you’ll be ready to take full advantage of the time when it ends!

Get your free course on trading and investing, at Dave McLachlan’s site ASXmarketwatch.com. Dave also offers independant stock market research to help people just like you.

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