Corrections are completely ordinary, healthy market events, yet there seemed to be an outsized negative reaction from investors during the third quarter correction. Surely, the fact that it had been nearly six years between corrections was a major factor and investors who could not stomach the volatility implicit in equities were chased back to the sidelines. Still, some market timers see this as an opportunity to go to cash, predicting a bear market on the horizon. Bear markets don’t pop up out of thin air, though, so we looked for evidence of a recession on the horizon.
These 6 charts show why the U.S. is not heading for a recession.