What is a recession and what does it mean for you? | Fidelity

A recession is a prolonged period of negative economic growth in a country, characterized by a decline in real income, employment levels, and industrial output. Recessions are different from bear markets, which refer specifically to stock market performance. The causes of recessions can vary widely, but they often result from a combination of factors. On average, recessions last around 11 months and occur about once every 6.5 years. Understanding what happens during a recession and how it works can help prepare for the next one by building an emergency fund, maintaining a professional network, and developing a long-term investment strategy.