Last week the National Bureau of Economic Research announced that the United States economy entered a recession in December of 2007. As if to confirm that finding, the November employment report showed that the economy shed the most jobs in a single month since 1974. Stock prices fell for the week, with the Dow Jones Industrial Average losing 2.2% to 8,635, the S&P 500 Index declining 2.3%, and the Nasdaq falling 1.7%.
Despite these declines, the investment firm BlackRock was encouraged by stocks shrugging off some bad economic news. Stock prices finished last week above the lows of October 10. Their conclusion now as it was in mid-October is that equity markets are in a bottoming process. Please click here to view a copy of their one-page report.