Despite a decline in foreclosures, home prices fell four percent in December.

And a new report suggests more Americans are choosing to rent until home prices stabilize.

But even with some ups and downs for the world's largest economy, Dadush sees reasons for optimism.

"I have seen the ups and the downs, and the catastrophes and the euphoria and sentiment does change very quickly," he said. "I would focus much more attention on the slowly moving variables, the unemployment rate, the indebtedness of households to judge whether we are moving in the right direction."

The National Association for Business Economics believes the U.S. economy is moving in the right direction. The association's latest survey points to an improving job market and economic growth of about 2.5 percent in 2012.