Glossary · from the DESK dictionary
Recession
A significant, widespread, and prolonged decline in economic activity, typically measured over two or more consecutive quarters.
In plain words
Typically accompanied by rising unemployment, declining corporate profits, and reduced consumer spending.
What it means for traders
A fundamental macroeconomic concept with substantial effects on practically all asset classes.
Common pitfalls
A recession can result in substantial and sustained price losses for equity investors over multiple quarters.
Related terms
Economic Slowdown · Composite Leading Indicator (CLI) · NBER Business Cycle Dating · Recession Dating Committee · Stagflation · Technical Recession · V-Shaped Recovery
From the DESK dictionary. For information only, not investment advice.
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DESK is a research tool and not investment advice. Page generated: 2026-10-12.