Bloodbath on Day 1 - does not mean immediate recession

• ISM's manufacturing index at 47.7
• Downgrade on the chip sector by Bank Am
• Oil (artificially) touches 100 a barrel!
• Gold and commodities rally - Gold crosses the '80s high of 850/ounce!
• Net result - Dow loses 220 points on day 1 of the new year! (worst opening ever)

If that does not worry an average investor, what else will?

But, I hold on to my view - the economy is NOT headed for a major recession. It will be a sustained slow down with ~1% growth rates for 4+ quarters. And for the financial sector, i still hold them (if you are in) & stay put - you won't repent! Don't expect 4 week gains, but hold tight for 6-12 months and you will be in for surprise.

Commodities - may look good. But dont tread in unless you are the proverbial fool - we WILL see a significant (read 15%+) correction in gold over the next 2-3 months. Gold will do good medium term, but get in after the next correction!

January is going to be a VOLATILE month (Capitals intended!). If you are in to sectors like Financials, hold on. But if you are trying to enter, cool down and wait till January end.