TOPEKA, Kan. (KSNT) – Some economists are predicting a recession in 2021, breaking the expansion that has occurred since the last recession in 2008.
Some financial advisers have begun hearing about the uncertain future from worried customers.
“It’s perfectly normal to be nervous and I think good to reassess that,” said Jim Hanna, a financial adviser at Ameriprise Financial Services. “Sometimes we’ll readdress that and maybe be a little more cautious than we were but typically still trying to stick to the plan and the time frame we designed in the beginning.”
Hanna said that these worried investors and business owners can take steps to ensure safety in these uncertain times.
“If we’re less certain about future times, we really want to be careful about adding debt at this time, make sure we’re having emergency funds and cash reserves,” Hanna said. “Really it’s an opportunity to prepare for what might be a little less certain and being able to prepare for those things.”
Agriculture, aerospace, and manufacturing industries are the most likely to be hit the hardest during a recession.
“Kansas is vulnerable to the changes in the agriculture markets, said David Sollars, dean of Washburn University’s School of Business. “Ag prices are down, wheat prices are down, corn prices are down, those affect farmers in Kansas.”
The economics of the situation could be politically charged with the upcoming election, according to Sollars.
“For some people having a recession during an election cycle is a good thing, for other people, it’s a bad thing, it depends on which side you’re on,” Sollars said. “Most professional economists that we look at aren’t talking about a recession, they’re talking about a slow down in growth.”
Trade wars and federal interest rates are major factors in determining the possible recession, according to Sollars. However, he is hopeful that Topeka will not be affected as hard as other areas due to their diverse businesses.