Mixed Signals: Is a Recession Looming or Beaten Back?

The S&P 500 is indicating an oncoming recession, according to economist David Rosenberg, who pointed to a slump in consumer discretionary, transportation and banking stocks as evidence. Despite the benchmark index rising 7.7% this year, Rosenberg said the most economically sensitive areas are down 33%, behaving as they did heading into previous downturns. Rosenberg recently predicted a recession has already hit US corporate profits, while markets guru Larry McDonald warned of a 30% crash in the S&P 500 by December due to dwindling corporate profits, less government spending and banking stress.