Let's say good morning now to the host of How to Money on KFI. It's our very own Joel Larsgard, who stood us up yesterday because he wanted to go to an awards show.
I know, I'm sorry about that, Amy, That's okay.
Was it fun you were at the the iHeart Podcast Awards show.
That's right, it was so much fun. I didn't win, but I enjoyed being there. It was so much fun just to meet all the interesting podcasters doing cool stuff in the industry.
All right, okay, so back to money.
Everybody's getting very nervous because of the tariffs in the back and forth with all that, and that has people talking recession.
Yeah, yeah, for sure. In recession.
There's like this like Goofield saying that economists have predicted nine out of the last five recessions, like they're just always predicting recessions. And I remember, maybe like eighteen months ago, Bloomberg had this like fabled article where they said, our recession indicator is telling us that there's one hundred percent chance of a recession, and then that recession didn't materialize.
And so sometimes people get fatigued at hearing these predictions over and over and they're like, all right, come on, when is it actually gonna happen or we actually gonna experience this recession. It's certainly looking a lot more real uh these days, and it's looking a lot more likely.
And I think that's largely that's not because the economy was on the rock, so that there was even this uh, there was something happening kind of uh that there was that there was an underlying weakness or something in in the marketplace. It's literally just economic policy from our elected
officials right now. And so what's happening with tariffs is creating so much uncertainty, so much unnecessary uncertainty in the marketplace, and for a lot of businesses that and it's and it's also causing a lot of investors to pull back and saying, I don't know, is this is this the best place for me to be putting my money right now, which just leads to a lot of uncertainty for consumers too on the back end.
Okay, so, Joel, you know, we all hear session and everybody goes, oh, no, a recession.
But what I mean practically, what does that mean for you?
Yeah? And mean so yeah, so that's a good question.
I mean, there's like the technical definition of a recession, right right, so that's like two quarters of down growth, and and like that is something that that's like, that's the nerdy economist side of things, But what it typically means we're talking about a recession and some people actually I hear some people rooting for a recession. But the truth is there's a lot of pain involved in a recession. And some people are saying, well, a recession, maybe that'll
mean home price is going down. Maybe that'll mean lower stock prices so I can get in on the action at a discount rate. And that might be true, and there might be some fringe benefits for some people, but that's given hopefully that you keep your job right, that income continues to abound for you in the midst of tough economic times, which certainly isn't guaranteed. So you know, we could see an uptick in in layoffs. Feels like we're already kind of seeing the front end of that
a little bit. But the more uncertainty there is for businesses, the less likely they are to hire people, the less likely they are to hand out generous raises, and so a recession really could be we don't know how long a recession could last. We don't know how deep a
recession could be. And again, so much of that depends on whether we pivot from some of the kind of tariff insanity that we're headed towards, and if we can kind of back down on some of that and maybe use it as more of a negotiating tactic like it was early on, instead of actually implementing these tariffs which are going to harm consumers. It could mean higher prices. Even if you keep your job and things are okay in your world, well, it's just likely going to mean
higher prices for everyone too. So it's really hard to say how this shakes out. But there's a lot of possibilities. And for me, when I'm talking to people, I want them to do two things. I want them to make sure that they have cash on hand, like liquid cash in a high heeled savings account is more crucial in a time of economic turbulence and an uncertainty. And then the other thing is as an investor, don't do anything different. And it sounds weird to say that, I think people
are like, well, I don't know, man. We can see the stock market drop another ten fifteen to twenty percent if you are in the wealth building phase of your life, in particular, if you have a decade plus to go before you're tapping those funds, I still just don't want people touching it. I want you to have a you know, an investment policy kind of a strategy that doesn't say I'm going to change on a whim based on who's
in the oval office. I want people to have the same investing approach through thick and through thin.
Because when you're in the stock market, you're in for the long run.
That's right, That's exactly right. And so yeah, the short run, it's it's not been great. We're basically in correction territory here, and that you know, ten percent draw down, but also know that that's not abnormal in a given year. So what we're seeing in some ways is a little abnormal as far from a policy perspective. But what we're seeing
from a stock market drop, this happens most years. In fact, that the stock market seeds to drop like this, I think when it's combined so with the politics and emotion, it just makes it.
Feel a lot worse.
Okay, so don't panic.
Exactly, Yeah, where's panicking going to get.
You exactly, exactly.
This is where things are going to get you when you listen to Joel lars Guard every weekend, He's going to help get you in, get you your money house in order. We'll say that. Lots of great advice, lots of great tips. It's the host of how to Money on KFI. You can hear it every Sunday from noon to too right here on KFI. You can also follow Joel at how to Money. Joel, Thank you, Joel.
Thanks Amy