U.S. Economic data in the first week of the New Year spelled T-R-O-U-B-L-E for both the US economy and the stock market. The December ISM report on January 2nd showed the manufacturing sector joining the housing and financial sectors already in recessionary territory.
Investors should note that if the US does fall into a recession, most market participants concur that there is very little the Fed can do about it now. "If we're going to have a recession, it's too late to do anything about it. The Fed can't prevent a recession if one's in the making, and we're pretty close'' said Stuart Schweitzer, global strategist at JPMorgan.
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