Business Week, 20th July, ran a useful review of why to worry - or, in our diction, to be wary of The Economic Time™ getting worse in America:
1. Earnings may not keep pace with expectations;
2. Consumer spending will slow due to higher gas prices as well as the housing slump/mortgage worries;
3. Inflation is the key enemy of the Fed, so higher rates are on the cards. My own view is that we are dealing with cost-push, not demand-pull inflation, as our subscribers know.
4. I would add that Merger and Acquisition financing and thus deals are drying up, so there will be less takeover-induced buying of stocks, and
5. Who knows what will happen with Iran, Iraq and North Korea?
Be wary, but don't worry. See how to make money off this.