Our Insights

 This month, Jason Weaver discusses flattening GDP components, recession and dividend growers.



4 components of nominal GDP: +6.5% in Q1 2022

Personal consumption expenditures: +2.7%
All Goods and services produced for household use (almost 70% of total GDP)

Business investment: +1.2%
Goods and services purchased by the private business sector

Government spending: -0.5%
Includes federal, state, and local governments

Net exports: -3.2%
The dollar value of total exports minus total imports




Recession Definition = 2 successive quarters of negative economic growth

Since 1953, average length was 10.3 months.

Cumulative SPX return was lowest in the year leading up to a recession (-3%), followed by 6 months before (-2%)

Average loss of 1% during a recession.

Markets look ahead while economic data looks behind.
Each time is different




Help to enhance total returns

Can provide a regular source of income

Have offered lower volatility and reduced downside risk relative to other equity strategies.