Terry Sawchuk on News On with Miranda Khan: Are We Heading Towards a Recession?

Nov 4, 2021 | In the News

News On with Miranda Khan speaks with Michigan wealth advisor to learn more about the state of the economy

Any information discussed in this article is for educational purposes only. It is not meant to be any kind of recommendation or financial advice. The information contained in this video is intended for informational purposes only. Any opinions are those of Terry Sawchuk and not necessarily those of JW Cole Financial, Inc. or JW Cole Advisors, Inc.

Securities offered through J.W. Cole Financial, Inc. (JWC) Member FINRA/SIPC. Advisory services offered through J.W. Cole Advisors, Inc. (JWCA). Sawchuk Wealth and JWC/JWCA are unaffiliated entities.

 

Companies across the country are hiring and increasing pay for employees, which often is a sign of a strong, healthy economy. However, at the same time, the U.S. is dealing with countless issues, from the supply chain crisis to inflation to surging gas prices, signaling that the economy may be headed for some troubled waters. What do all these conflicting messages mean for investors? News On with Miranda Khan spoke with Terry Sawchuk, founder and chairman of Sawchuk Wealth, for insight on these uncertain times.

“I think we are heading towards a bigger slowdown than people think,” says Sawchuk. “As we head into the fourth quarter, the stock market might continue to do well for a little while, but I think as we get into next year, things are going to roll over. It’s probably time to start tightening the belt.”

For investors concerned about their budget as we head towards a potential downturn, Sawchuk mentions that it may be beneficial to cut certain costs, especially if energy prices continue to increase. He also says that it might be time to build a strong cash reserve. “I don’t think the economic numbers really reflect what’s actually going on and what we are likely to see in the next six to twelve months,” he explains.

But should investors be concerned about the potential for a future recession? According to Sawchuk, it is possible.

“The definition of a recession is two straight quarters of negative GDP,” explains Sawchuk. “We haven’t had that. We still have positive GDP, but the rate of change is shrinking. I think as we head into next year, it is possible that we could teeter on the brink of a recession. It’s not off the table at all at this point.”

Click here to watch the entire segment.

 

Any information discussed in this article is for educational purposes only. It is not meant to be any kind of recommendation or financial advice. The information contained in this video is intended for informational purposes only. Any opinions are those of Terry Sawchuk and not necessarily those of JW Cole Financial, Inc. or JW Cole Advisors, Inc.

Securities offered through J.W. Cole Financial, Inc. (JWC) Member FINRA/SIPC. Advisory services offered through J.W. Cole Advisors, Inc. (JWCA). Sawchuk Wealth and JWC/JWCA are unaffiliated entities.