Worry Grows On Wall Street

Investing.com - The recession-bear market chorus on Wall Street is growing louder.Societe General is the third firm in a week to call for either a major downturn in the economy or the stock market.SocGen sees troublesome signs in rising credit card delinquencies at small banks and a flattening of the yield curve.The firm says investors are becoming fearful about the economy, even though consumer confidence data suggest otherwise. Guggenheim Partners recently warned that excessive fiscal stimulus will force the Federal Reserve to raise interest rates to the point that it will push the economy into recession.Stifel also sees the Fed taking a more aggressive approach to interest rate hikes in the coming year, which will cause a bear market in stocks. Bear markets and recession often coincide.