If the U.S. economy is indeed headed for recession, what will be the early signs of an economic recovery? Business Week recently surveyed a group of Wall Street economists to find out what these early signs might look like. When the following start to happen, it may be safe to emerge from your stock market foxhole:

(1) Strong fiscal stimulus from Washington that "gets money into people's pockets now." This is all the more true in an election year, when the economy is already emerging as an important campaign issue.

(2) Falling energy prices that reduce the pressure on the American consumer.

 (3) Employment figures start to stabilize or improve. It may sound obvious, but the more Americans out of work, the greater the drag on the U.S. economy.

(4) The housing market starts to show signs of recovery. This will help consumers as well as financial institutions.

(5) Resilience in the global economy, in the face of weakness domestically.

For the TradeKing community: Any ideas for which stocks to watch for clues of an early recovery?

[image: Signs]

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