71% Of Economists Say We Are Now In A Recession

Wow.

In The Wall Street Journal’s just completed March survey of economists, 71% say we are now in a recession.  That amounts to 36 of the 51 respondents (subscription required).

The probability of the US entering a recession in the next 12 months also lept from 49% last month to 65% (Recession Probability Chart)(This number can be less than the 71% because even economists who believe we are in a recession right now can assign a probability of less than 100% to the question of if we will have a recession in the next 12 months).

Tuesday night at my Borders Talk on “How To Invest In The Coming Bear Market”, the night of the monster rally, a gentleman asked if he should use days like today to lighten up on stocks.  My answer: Absolutely. 

Frankly, days like that are life rafts the market is throwing you if you are long.  Take them as an opportunity to: GET OUT!