Will the Next Recession Cause a Stock Market Crash?

The terms recession and stock market crash are often used interchangeably in spooky headlines about what might be ahead for the economy.

The reality is that while the stock market may dip due to the psychological effects of a recession, there isn't a perfect cause and effect relationship between the two. And unfortunately, scary headlines about both often push the average investor to do the exact opposite of what they should do when a recession or stock market lull actually happens.

In this video from our YouTube channel, we explain the difference between a recession and a stock market crash, examine how the stock market tends to perform during and after recessions, and what investors should do when these types of macroeconomic events occur.

Source Fool.com