Treasury Secretary Janet Yellen Says No Recession, but Following the Money Tells a Different Story
Putting your money to work on Wall Street has been quite the adventure over the past two years. We watched the Dow Jones Industrial Average (DJINDICES: ^DJI), S 500 (SNPINDEX: ^GSPC), and Nasdaq Composite (NASDAQINDEX: ^IXIC) claw their way to multiple record-closing highs in 2021, plummet into a bear market in 2022, and now bounce back decisively since hitting their respective bear market lows last year. By one definition, all three indexes are in new bull markets.
However, the health of the U.S. economy continues to be a sizable overhang for the stock market and investors. Even though the economy and stock market aren't joined at the hip, economic weakness often leads to declines in corporate profits, which can have a deleterious effect on equities.
To add to the above, stocks have historically performed quite poorly in the first few months following the official declaration of a U.S. recession by the eight-economist panel of the National Bureau of Economic Research. In short, recessions are usually an ominous sign for Wall Street.
Source Fool.com
