Navigating the Stock Market During a Possible Recession

The Federal Reserve officials expect a mild recession before the end of the year, and JPMorgan Chase analysts estimate the chance of a U.S. recession at greater than 50% before the end of 2023. The stock market tends to be forward-looking in nature, and history suggests that the S&P 500 could reach new lows in the near term. However, every bear market in the last 75 years has stopped before the end of a recession, meaning market-timing strategies are often a recipe for disaster. Investors who stay invested in the stock market during bear markets are likely to benefit from the rebound, as missing just a few of the strongest days can dramatically reduce long-term returns.