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What Is a Recession? Why Markets Drop and Opportunities Rise

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What is a recession — and why it matters. This could be a market crash — or an opportunity. A recession is a period of declining economic activity. The rule of thumb is two consecutive quarters of negative GDP growth. But it's not just GDP — it's jobs, spending, and business investment all slowing down at once. When a recession hits, markets drop. But it also creates opportunities for those who understand the cycle. Watch the data, not the headlines. This is what we teach in Module 6.1 — Macro Indicators and Sentiment. https://youtu.be/LnayHWPF-Wc

Key Takeaways

  • A recession is a period of declining economic activity
  • The rule of thumb is two consecutive quarters of negative GDP growth
  • It affects jobs, spending, and business investment
  • Recessions create market drops — and opportunities
  • Watch the data, not the headlines
  • This is what we teach in Module 6.1 — Macro Indicators and Sentiment

Get the full breakdown and the complete Larke Cycle framework.

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For educational purposes only. Not financial advice. Past performance does not guarantee future results. Trading involves risk. Consult a qualified financial adviser before making investment decisions.

I'm Russell Larke — BA (Hons) Business Management, currently completing an MSc in Systems Thinking in Practice, with plans to pursue a doctorate. I've run an environmental consultancy as Managing Director and have traded financial markets for years. I teach the Larke Cycle — a testable framework for understanding market structure beyond chartism. Regards, Russell Larke BA (Hons) Business Management | MSc Candidate (Systems Thinking) Beyond the Chart

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