Economics
U.S.: The Doomsayers Might Be Jumping The Gun
Unless the stock market really tanks, the weakness will be short-lived
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It's easy to be pessimistic right now. Important data are headed south, and there was a note of urgency in the Federal Reserve's surprise interest-rate cut. Stock prices have given up all of their post-rate-cut surge. Investors are still fretting about profits. And some of Wall Street's top economists are concluding that the economy is already in recession.
Although things may look bleak, don't join the funeral procession just yet. In fact, given the Fed's aggressive and preemptive action on Jan. 3--and its strong hint that more is on the way--now is the time to look up from the valley of slow growth to better economic times in the second half. Moreover, the trek through the first half may not be so treacherous.