● Budget cuts are taking a new toll on the NYC Metropolitan Transit Authority. More than 1,000 layoffs, including many top managers, are expected as the agency strives to cope with dwindling revenue in the tough economic times.

● San Francisco school officials are scheduled to vote on a plan to layoff more than 900 school employees.

● In what it calls a "fundamental transformation" of its business, ABC News plans to cut about 20 percent of its workforce — or around 300 people — through buyouts or layoffs.

 

● Sales of new homes plunged to a record low in January, underscoring the formidable challenges facing the housing industry as it tries to recover from the worst slump in decades.

● More than 11.3 million homeowners -- nearly one-fourth of all Americans with a mortgage -- owe more on their loan than their home is now worth.

 

● Gallup's daily measure of U.S. employment reveals that 19.9% of the U.S. workforce was underemployed during the month of January, translating to close to 30 million Americans who are working less than their desired capacity. Those who were underemployed reported spending 36% less than those who were fully employed.

 

● With this as a backdrop, what are investors to do? We will discuss the need for a nimble, focused approach to investing that avoids broad market exposure when the economy is showing such a high level of weakness. You do not want to own a broad market index if the general direction is down.