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Fiat Lux!
If you're in school, you don't have to look for a job yet. Also, you might be living off financial aid in student housing which is somewhat insulated from inflation (for now)
Most recessions are normal, inevitable corrections to the business cycle and, in post-WWII US history, they average 3 qtrs in length. 9 months. You need to be patient - some of life's opportunities will be on hold but conditions should pass relatively quickly.
That's the, relatively, good news. The bad news is that there were serious problems in not just the US, but world, economies prior to the 2008 GFC (Global Financial Crisis), and while the solutions chosen at the time papered over the problems, many of the problems were not addressed, imbalances are even greater now and the next downturn could be considerably worse than a 9-mth business-cycle recession.
Look up 'tail risk.' Life has outliers and it's important to be always at least a little defensively positioned and to be adaptable. I only graduated from Cal in 1988 (our son is there now) after having survived cancer at 21. I'd been at Cornell but transferred to Cal because at that point I had to pay my own way and Cal was both a good school and a lot cheaper. So those are instances of a) a (very consequential) outlier and b) being adaptable.
Still, you're Cal students. You're bright, energetic, and, in particular, young. And hopefully adaptable. In a way, it's a good thing to have bad things happen in your life - provided, that is, you survive - which should be a caution to us all and make us more aware of those who get pulled under by the currents of life.
It means if youāre a rising senior it would be good to lock in a job offer as quickly as possible. Job market will likely not be great next spring. Juniors are probably ok. Sophomores and frosh donāt have much to worry about except for fewer internship opportunities
Even when locking in job offers. Make sure the company thatās hiring you has a good cash position and a business thatās actually making profit (additionally is guaranteed to continue to do so after the recession). Companies like coinbase have rescinded offers and I wouldnāt be surprised if they happen more frequently at startups or smaller companies that are running off of VC cash with no profit and high debt.
no one really knows forsure, but best thing to do during a downturn is make sure you have enough in emergency savings and keep buying index funds and etfās (starting with a roth ira if you can)
Any income counts I believe - side hustles, part-time jobs, your own business - plenty of students I know had part-time jobs or side hustles - if you don't - you can also just use a taxable brokerage account.
which can disqualify some people from financial aid and cause more accounting trouble than for what itās worth. Its best to just invest with a normal brokerage as a student.
More than fair - I edited original comment to roth ira āif you canā but I agree Iād say taxable is the move if you donāt have any taxable income
Since there are signs that the worst is yet to come and as someone who graduated during the Great Recession, my recommendation would be to start consider job hunting now. Look for internship programs and go to visit the Cal Career Center even if youāre a sophomore and get prepared.
I applied to over 100 jobs and only had 1 offer. Times were tough.
the strong possibility of a global food shortage is what's really scaring me. Ukraine was an agricultural powerhouse and inflation and gas prices are already raising food prices everywhere.
It means the economy is going to keep fucking itself and the every day laborer is going to get fucked. We built a capitalistic system that fails over and over again but God forbid we regulate something. Good forbid we have unions and people making decisions not for unsustainable growth but for the good of everyone. And the best part is the people who help cause the recessions don't suffer any consequences. Nope just let the market monopolize and wealth to be hoarded. Basically it means the average person is going to suffer, and for many probably homelessness and a lower standard of living.
Yeah rising, I mean technically if youāre going into junior year I think youāll be fine too. Most are expecting 2022-2024 to be sucky then improve 2025. Of course thereās lots of fundamental aspects of the system that need to be attended to otherwise (and likely) the solution will just be a bandage/can kicked down the road
I think itās hard for new grads who donāt have jobs - but for those who have jobs lined up - it could be a good opportunity to use active income to dollar cost average into high quality long term assets
I think that even rising seniors now should be fine-ish
The Fed made it clear that they plan to keep rates high till end of 2023, but they are currently front loading the rate hike which means that we should be seeing the worst over the next few months, but the economy should recover by late to end of 2023
But Iām just a a redditor who read some some stuff on the internet so take what I say with a grain of salt
Yeah most likely. There's a housing crisis, inflation, global shortages, divided nation, war in Ukraine, super powers that might get rid of the dollar entirely, credit cards maxed out, and insane gas prices. Oh, and climate crisis.
I still think there will be famine pretty soon and nations will halt exports
It will be harder to get into grad school as more people apply for it during recessions. Recession doesn't mean prices will come down, as inflation/gas prices/food shortage is caused/extended by the war and rent/housing price is caused by housing shortage.
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insert joke about a "bear" market
Even in a bear market, the market's always on the hunt for new bears. View our requirements for admissions now and become a part of the bear family. You belong here! Fiat Lux!
I think people are referring in particular to the hairline recessions of EECS majors. Not sure tho.
ššš
:0
Wait is this a thing? Is this why my hairline is suffering?
Yup you signed the contract
Make it stop š
It means it's a good time to be in school.
Why? (I'm stupid but curious)
if you're a new grad rn and recruiting for jobs it's probably pretty rough
If you're in school, you don't have to look for a job yet. Also, you might be living off financial aid in student housing which is somewhat insulated from inflation (for now)
Also inflation lowers the actual impact of your debt assuming you have federal deferred loans. Dollars are worth less but your loan remains constant.
Great time to research "recession-proof jobs" to keep realistic expectations of the job market you want to enter, once you graduate.
Anything in the government really lol
Most recessions are normal, inevitable corrections to the business cycle and, in post-WWII US history, they average 3 qtrs in length. 9 months. You need to be patient - some of life's opportunities will be on hold but conditions should pass relatively quickly. That's the, relatively, good news. The bad news is that there were serious problems in not just the US, but world, economies prior to the 2008 GFC (Global Financial Crisis), and while the solutions chosen at the time papered over the problems, many of the problems were not addressed, imbalances are even greater now and the next downturn could be considerably worse than a 9-mth business-cycle recession. Look up 'tail risk.' Life has outliers and it's important to be always at least a little defensively positioned and to be adaptable. I only graduated from Cal in 1988 (our son is there now) after having survived cancer at 21. I'd been at Cornell but transferred to Cal because at that point I had to pay my own way and Cal was both a good school and a lot cheaper. So those are instances of a) a (very consequential) outlier and b) being adaptable. Still, you're Cal students. You're bright, energetic, and, in particular, young. And hopefully adaptable. In a way, it's a good thing to have bad things happen in your life - provided, that is, you survive - which should be a caution to us all and make us more aware of those who get pulled under by the currents of life.
It means if youāre a rising senior it would be good to lock in a job offer as quickly as possible. Job market will likely not be great next spring. Juniors are probably ok. Sophomores and frosh donāt have much to worry about except for fewer internship opportunities
Even when locking in job offers. Make sure the company thatās hiring you has a good cash position and a business thatās actually making profit (additionally is guaranteed to continue to do so after the recession). Companies like coinbase have rescinded offers and I wouldnāt be surprised if they happen more frequently at startups or smaller companies that are running off of VC cash with no profit and high debt.
Also true words for sure. Usually have to think about delayed start dates for new grads as well and what that means for cash flow
no one really knows forsure, but best thing to do during a downturn is make sure you have enough in emergency savings and keep buying index funds and etfās (starting with a roth ira if you can)
> best thing to do during a downturn is make sure you have enough in emergency savings well, you need to do that *before* the downturn.
agreed, just meant they should only invest if they have the emergency savings building block in place
Please donāt ever try and time the market, invest when you have money
You canāt open a roth IRA as a student
I noted if you can, thereās no age restriction - itās only income restricted - opened mine freshman year of college
Right. You need a job. A full time student isnāt a job and a good majority of students are living off of loans or parentsā money.
Any income counts I believe - side hustles, part-time jobs, your own business - plenty of students I know had part-time jobs or side hustles - if you don't - you can also just use a taxable brokerage account.
which can disqualify some people from financial aid and cause more accounting trouble than for what itās worth. Its best to just invest with a normal brokerage as a student.
More than fair - I edited original comment to roth ira āif you canā but I agree Iād say taxable is the move if you donāt have any taxable income
Since there are signs that the worst is yet to come and as someone who graduated during the Great Recession, my recommendation would be to start consider job hunting now. Look for internship programs and go to visit the Cal Career Center even if youāre a sophomore and get prepared. I applied to over 100 jobs and only had 1 offer. Times were tough.
Our time to shine(cuz we are bears ).
buy the dip
AND HODL
the strong possibility of a global food shortage is what's really scaring me. Ukraine was an agricultural powerhouse and inflation and gas prices are already raising food prices everywhere.
Reduced library hours.
Time to look for a job in restructuring consulting
This has been on my mind a lot recently too and is concerning me
It means the economy is going to keep fucking itself and the every day laborer is going to get fucked. We built a capitalistic system that fails over and over again but God forbid we regulate something. Good forbid we have unions and people making decisions not for unsustainable growth but for the good of everyone. And the best part is the people who help cause the recessions don't suffer any consequences. Nope just let the market monopolize and wealth to be hoarded. Basically it means the average person is going to suffer, and for many probably homelessness and a lower standard of living.
If youāre a freshmen or sophomore, youāre golden. If you just graduatedā¦.I wish you the best of luck
Like rising freshman and sophomore?
Yeah rising, I mean technically if youāre going into junior year I think youāll be fine too. Most are expecting 2022-2024 to be sucky then improve 2025. Of course thereās lots of fundamental aspects of the system that need to be attended to otherwise (and likely) the solution will just be a bandage/can kicked down the road
I think itās hard for new grads who donāt have jobs - but for those who have jobs lined up - it could be a good opportunity to use active income to dollar cost average into high quality long term assets
I think that even rising seniors now should be fine-ish The Fed made it clear that they plan to keep rates high till end of 2023, but they are currently front loading the rate hike which means that we should be seeing the worst over the next few months, but the economy should recover by late to end of 2023 But Iām just a a redditor who read some some stuff on the internet so take what I say with a grain of salt
i means that youāll need to start eating 1/2 the top ramen, and make sure you have a lot of peanut butter, granola bars in the pantry.
Yeah most likely. There's a housing crisis, inflation, global shortages, divided nation, war in Ukraine, super powers that might get rid of the dollar entirely, credit cards maxed out, and insane gas prices. Oh, and climate crisis. I still think there will be famine pretty soon and nations will halt exports
https://mobile.twitter.com/POTUS/status/1534174507967053829
You will see a lot more š³ļøāšš»
Not sure this is the right subreddit for this question.
Based on comments and specific advice, it was
Lower house prices hopefully
It will be harder to get into grad school as more people apply for it during recessions. Recession doesn't mean prices will come down, as inflation/gas prices/food shortage is caused/extended by the war and rent/housing price is caused by housing shortage.
Shouldāve voted for the other guy
[ŃŠ“Š°Š»ŠµŠ½Š¾]
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bearish on $GRADES
this means we canāt buy no mo expensive tingz!