Northwestern Mutual's Schutte sees recession ahead, soon after rate cuts

Brent Schutte, chief investment strategist at Northwestern Mutual Wealth Management Co., says the economic cycle is now in its last stages, and while there may be a blow-off top before trouble is here, he expects a recession and he will not be surprised if it occurs after the Federa;l Reserve cuts interest rates. While many observers expect cuts to help markets, Schutte says that the Fed has never been able to take an overheated economy and cool it without triggering a recession. He added that the last four recessions all occurred shortly after rate cuts. In the Market Call, Ira Rothberg, portfolio manager for the Hennessy Focus Fund, discusses buying great companies at modest discounts, with the courage to hold them for years waiting for the payoff. Plus, Chuck answers a listener's question on deciding whether pet insurance is a good idea for a new puppy.