Free for 90 days: Sign up now and get 90 days managed free after your first deposit. See offer details

<title>Dismiss</title>

Hoverboard Header

Financial Goals

Financial Term of the Day: Double Dip

In the financial media lately, there's been a lot of chatter around the concept of a "double-dip." In short, this term refers to a situation in which GDP is on the rise out of a recession, but then begins to fall again, signifying another recession.

Articles by Betterment Editors

By the Editorial Staff
Betterment Resource Center  |  Published: August 26, 2010

double-dip

The chart, courtesy of Macroeconomic Advisers, shows monthly U.S. nominal GDP figures from the first two quarters of 2010. As you can see, nominal GDP rose through April but started to decline in May and June.

So what does this mean? Are we, in fact, heading into another recession? It’s too soon to say–The Economist cautions readers to take the figures with a grain of salt because of the instability of monthly numbers. In the meantime, as always, it’s important to practice healthy long-term investing strategies.

We recommend that you shouldn’t base your investing decisions on near-term worries; it’s better to think about your long-term goals.  Betterment’s investment advice tools help you figure out how long your saving for, and how much risk you’re comfortable with.  That’s the right way to think about investing, rather than reacting to current events, because current events and future expectations are already reflected in stock prices.  What happens next is anybody’s guess, but in the long term, the market tends to rise.

Recommended Content

View All Resources
5 Finance Books That Can Help You Get it Together

5 Finance Books That Can Help You Get it Together

Ever wondered what’s on our bookshelf? We share five finance books that we love, because we’re sure they can help you on your journey to become a smarter investor.

10 Financial To-Dos Before Your First Wedding Anniversary

10 Financial To-Dos Before Your First Wedding Anniversary

Planning your financial life with your spouse can be very stressful. Here are ten considerations you should talk about before reaching your first anniversary.

How We Use Your Dividends To Keep Your Tax Bill Low

How We Use Your Dividends To Keep Your Tax Bill Low

Every penny that comes into your account is used to rebalance dynamically—and in a tax-savvy way.

Explore your first goal

Safety Net

This is a great place to start—an emergency fund for life's unplanned hiccups. A safety net is a conservative portfolio.

Retirement

Whether it's a long way off or just around the corner, we'll help you save for the retirement you deserve.

General Investing

If you want to invest and build wealth over time, then this is the goal for you. This is an excellent goal type for unknown future needs or money you plan to pass to future generations.

Smart Saver

You could earn 20X more than a typical savings account with our low-risk investing account for your extra cash.

<title>Close</title>

Search our site

For more information and disclosures about the Betterment Resource Center, click here. | See our contributors.