Fears of a meltdown are growing as Google searches for “recession” soar more than 350% in a year.

With markets plummeting for nearly two weeks, investors seem to be considering the likelihood of a Federal Reserve (Fed)-orchestrated hard landing. Stronger-than-expected August Consumer Price Index (CPI) data sent markets crashing as Reserve interest rate hikes are expected federal government will continue to hurt the economy for the foreseeable future.

US house prices fell for the first time in a decade, while the S&P 500 and Nasdaq indices lost -23.96% and -31.60% respectively since the start of the year (YTD), investors fearing a recession scenario.

Additionally, according to data from Google’s search trends, searches for the “coming recession” have increased by 247% over the past year. Cinch Home Services and shared with Theinquirer. Additionally, searches for the term “recession” have also increased by 355% over the past year due to the rising cost of living around the world.

Recession fears in the United States. Source: CinchHomeServices

Geographic distribution

Among people searching for the “coming recession,” South Dakota has the highest search frequency, with 1.1 searches per 100,000 Americans. In contrast, when it comes to a housing slump, Nevada, California and Colorado lead the way.

Worries about a housing slump by state. Source: CinchHomeServices

During the 2008 housing crisis, states like Florida and Texas were the hardest hit. The cooling of the housing market therefore has residents seeking more information about a possible new housing crisis in the United States.

Liquidity crisis

In essence, as Theinquirer reported a few weeks ago, this time around the market cooling seems to be more related to the liquidity crunch due to the withdrawal of Fed funds from the markets, coupled with the rate hike. of interest.

While there is always the possibility of a housing crisis commensurate with that of 2008, the banking sector is in a much better position this time around; therefore, the ripple effects observed in 2008 should not be as severe.

Either way, fears of a potential recession may be warranted as global macro events look increasingly bleak.

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