More companies reporting 4th quarter 2015 earnings are missing forecasts raising concerns that the US economy is heading for a recession. Companies like media giant, Viacom, SolarCity, Macy’s, Tiffany & Co, News Corp and professionals’ social media network LinkedIn have posted Q4 earnings that missed on topline or on guidance as conditions tighten across the services and retail sectors in the world’s largest economy.

The poor earnings reports coincide with a steep selloff in US stocks brought on, primarily, by the stark realization among market participants that the near decade-long era of ultra-cheap money has come to an end as the US Federal Reserve ostensibly embarks on a path towards normalizing monetary policy.

“There’s little doubt that 2016 is setting a very different tone from the narrative we’ve grown accustomed to over the past few years,” remarked Harry Coolidge, a senior economist at Mizuho Corporate Global.

“Companies are making less money because businesses and consumers are spending less. What’s more is that there’s no more easy, ultra-cheap money in the form of quantitative easing with which to plug holes,” he noted alluding to the widespread practice where companies buyback their shares to boost shareholder value.

Stock markets have tanked since the start of January as investors come to terms with the fact that, without the “sugar rush” of cheap money being thrown at the market, there is no justification for the sky-high valuations many US companies have enjoyed.

Mizuho Corporate Global says it expects the US economy to drift into a recession by the third quarter of 2016.

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