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Financial market turbulence fueling talk of possible economic recession

Financial market turbulence fueling talk of possible economic recession

 

Turbulence in the financial markets is prompting talk of the dreaded "R" word-recession. Experts say recent bond trends are troubling.

An inverted yield curve means you can get the same or higher interest rate off a short term bond than you can on a longer term bond, like ten years. In that case: it wouldn't pay off to loan your money longer.

"Inverted term structure of interest rate is never good for the economy," said Kamran Afshar, a DeSales University professor.

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"If people are willing to loan you money for ten years at a lower interest rate than for two months, there is something wrong with this."

Kevin Brosious, the founder of Wealth Management, says an inverted bond yield curve is not an absolute indication of a looming recession and certainly not an immediate one.

But your financial planning strategy should differ slightly depending on where you're at in life.

When stocks drop, "Younger folks, that have a longer runway, this is the best thing that could have happened to you" because you can buy more stocks for less, Brosious said.

Those most at risk are people who retire in a recession, he said.

However, he cautions against selling off all your stocks.

"You're just locking in your losses if you sell your stocks right now," he said.

He said some Americans may have 30 years of retirement. That's' enough time to go through several market crashes and corrections. Those corrections are often when investors have the most to gain.

Shop Talk

What's new in the business community!

If you know of local business openings or closings, please notify us here.

· Bru Daddy's Brewing to launch new restaurant, Blended by Bru Daddy's, on downtown Allentown ArtsWalk. Soft opening is planned for May with grand opening in June.

· BSI Corporate Benefits, LLC (BSI) promoted Valerie (Val) Lewis to Chief Operating Officer. The nationwide employee benefits consulting firm executes cost control strategies to manage their clients’ healthcare costs.

. UPMC Health Plan appoints Dr. Amy Meister as chief medical health and wellness officer

· Center for Vision Loss, a nonprofit in the Lehigh Valley and Monroe County, changes name to Sights for Hope

· PPL Corporation names Gregory Dudkin executive vice president and chief operating officer. Stephanie Raymond will succeed him as president of PPL Electric Utilities.

· New Vision Theatres Tilghman Square 8 will become Tilghman Square 8. Its anticipated opening is in April 2021.

.Genesis Bicycles in Easton has been sold to Trek Bicycle. Genesis' retirement sale starts Thursday, April 1

· European Wax Center to open at the Promenade Shops at Saucon Valley in summer 2021

· Split Pine Axe Throwing opens at 627 Hamilton Street in Allentown

· Krave 2 Taste opens new location at the Lehigh Valley Mall, next to Verizon. The frappe and smoothie shop will hold a grand opening event on March 27 from 12-3 p.m.

· First Commonwealth Federal Credit Union appoints James Gagliano as new chief experience officer

· New Bethany Ministries in Bethlehem announced several promotions: Veronne Demesyeux was named Associate Executive Director; Tina Sargent was promoted to Director of Finance and Administration; and Lisa Myers was named Controller.

. PPL Corporation named Best Place to Work for LGBTQ equality on the Human Rights Campaign Foundation's 2021 Corporate Equality Index. It's the fifth consecutive year PPL has earned high marks on the national report

· GEICO has opened an office in the Broadcasting Square shopping center, 2733 Papermill Road, Suite X3, in Spring Township. Office hours are Mon.-Fri., 9 a.m.-7 p.m., and Saturday, 10 a.m.-6 p.m.

· Bimbo Bakeries USA has earned the EPA's Energy Star certification for superior energy efficiency at 15 of its bakeries, including the one that produces Maier's Bakery items in southwest Reading's Oakbrook neighborhood.

· Giant to build new, bigger grocery store near current location on West Swamp Road (Route 313) in Doylestown. Construction is set to start mid-March with an anticipated opening date later this year.

· Peeps & Company store at the Promenade Shops of Saucon Valley to close for good

. Victaulic appoints Rick Bucher as CEO, succeeding John Malloy, effective Jan. 31, 2021

· Ben Franklin Technology Partners of Northeastern Pennsylvania has appointed Angelo J. Valletta as president and CEO, succeeding R. Chadwick Paul Jr., who will retire on March 31, 2021

· Valley Oral Surgery opens new location in Quakertown, at the practice of Dr. Mark Elstein, who has joined the Valley Oral Surgery team. The 1402 Broad St. office is the company's fourth location.

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