Negative Thinking in the Market: The Bear's Back

NEW YORK (Real Money) -- If you didn't know any better, you would say the recession started last week, when the Federal Reserve signaled that the time to get tough is nearing. The only stocks that reacted well yesterday were stocks that are staples, which are beneficiaries of the decline in inflation. Everything else, particularly anything that needs even a remotely robust environment to make money, was killed. It was as if the recession chimes went off and people fled from stocks that six months ago they couldn't get enough of.