'Hip hip, hooray for the U.S. economic recovery! Unemployment is down, consumer confidence is up and the "animal spirits" that keep America Inc. hopping are finally reawakening. The Federal Reserve feels optimistic enough to have turned the page on the Great Recession earlier this month by raising interest rates for the first time since 2008. Phew, glad that's over.
Or is it? Although most professional forecasters expect the U.S. economy next year to continue its slow trudge back to respectability, some experts see danger on the horizon.
In a December report, Citi Research analysts put the probability of the U.S. entering a new recession -- two consecutive quarters of shrinking economic growth -- at 65 percent. That prediction is partly rooted in history...'. [excerpt from CBS Money Watch]
While I'm certainly no market analyst, I can clearly see which way the winds are blowing. Considering the facts that China's economy is currently imploding, that the global emerging markets are slowing and oil was sliding below $30 a barrel with no end in sight - one can easily see why so many investors are getting just a teeny bit jumpy.
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