Rule #1 Finance Blog

With Investor Phil Town

What Really Causes Recessions?

There’s a lot of speculation that another recession is on the horizon.

You may ask…

Are these speculations true?

Will my family be affected?

What will happen to my stocks and my money?

Understanding the underlying factors behind what causes a recession can be a critical factor in avoiding losses.

It’s not news to anyone that the U.S. stock market has had quite a few good years. It actually was in the longest bull market in American history. So, we are due for a recession. In order to make accurate predictions concerning another recession, you must be aware of the factors that can cause one.

Check out this video where I break down three major things about what really causes recessions:



Even when Warren Buffett talks about it he says, “We shouldn’t have the kind of debt we’ve got, with unemployment rates where they are, with inflation rates very low, and the Federal Reserve lowering interest rates.”  That just doesn’t compute in any of Warren Buffett’s time on the planet.

If you’re prepared with a watchlist, because you’ve learned how to invest, you have a list of great businesses you want to buy. The coming, inevitable recession is going to be an opportunity for you to swoop in and buy these businesses on sale. Then, when the market rebounds, your investments will become very profitable.

The principles of Rule #1 Investing teach that identifying value is critical so that you know when it’s an opportunity to buy a great company on sale. It’s the way you can find the best deals on buying wonderful businesses and take advantage of a recession when everyone else is paniking.

Do you think we’re headed for a recession? This Stock Market Crash Survival Guide will help you prepare for the next market crash and help you cash in when the market drops!

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Phil Town is an investment advisor, hedge fund manager, 3x NY Times Best-Selling Author, ex-Grand Canyon river guide, and former Lieutenant in the US Army Special Forces. He and his wife, Melissa, share a passion for horses, polo, and eventing. Phil’s goal is to help you learn how to invest and achieve financial independence.