When there is a fall in the market, investors are bombarded by opinions from “experts” speculating on how far markets will fall. These experts are currently debating how far interest rates will rise and whether we will enter recession.

Recession is defined as “a period of temporary economic decline during which trade and industrial activity are reduced, generally identified by a fall in GDP in two successive quarters”. Investors need to appreciate that periods of recession are a normal part of the business cycle and (for those who are reasonably positioned) are temporary in their effect.