The memo warns that a U.S. recession is likely as concerns about the stock market and economy have risen dramatically. It recommends shifting to a market neutral strategy as equity values will remain depressed for an extended period. Several indicators point to worsening economic conditions, such as banks entering risk aversion mode, high yield bonds becoming illiquid, weaker auto and revenue growth sales, impacts from low oil prices yet to be fully realized, and declining freight volumes. Caution is advised given these rising concerns about a potential recession.