Heresy Financial: The 2024 Recession is About to Hit Hard

While the market is looking strong going into the end of 2023, events may mean some pain for investors in 2024.

A series of macroeconomic factors at play could become a perfect storm that sends stocks tanking next year. Understanding those factors, and knowing what to look for as they unfold could be crucial to protecting and growing your wealth next year.

For starters, the 2023 banking crisis never really went away. The markets shrugged off the second and third largest bank failures in U.S. history back in the spring. Yet many banks have liquidity issues.

Plus, many banks have problems with their commercial real estate loans. A decline in office space demand and a rise in online shopping has hit that space hard. Losses on commercial loans next year may precipitate a banking crisis.

In the meantime, data shows that household debt is also on the rise. That includes high interest rate credit card debt.

At the same time, household savings are going negative. That indicates that consumers are draining their bank accounts. The last time this happened was in 2007.

While some of that decline may be moving off of excess savings from the pandemic era, it’s a danger. Consumer spending is a massive part of the economy. And if consumers have to cut back, the economy could stall out quickly.

To look at the full list of dangers that could culminate in a recession next year, click here.