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October 7, 2008 1:17:02 AM CDT

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5 Reasons to Think Bearish

Posted Jul 22, 07 8:29 AM CDT in Business 

(Newser) – Wall Street is giddy with low unemployment, optimistic earnings predictions, and a resilient economy, but BusinessWeek lists five things for investors to worry about.

  1. Volatility in earnings, especially tech companies
  2. Consumer spending, as gas prices take their toll
  3. Inflation, which could prompt the fed to raise interest rates
  4. Subprime aftereffects, as the panic spreads to other forms of debt
  5. Too much optimism, as it starts to look like irrational exhuberance

Source BusinessWeek

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An empty lot sports a sale pending sign in a new subdivision in Salem, Ore., Friday, July 6, 2007. As the housing market slump continues to hammer Wall Street hedge funds, and demand for real estate...   (Associated Press)
Co., publisher of The Wall Street Journal, to the media empire he has spent a lifetime building. But with the sudden departure of a director in protest of the deal with News Corp. and more signs of dissent...   (Associated Press)
A new high for the Dow Jones is seen on a billboard in Times Square in New York, Tuesday, July 17, 2007. The Dow Jones industrial average swept past 14,000 for the first time Tuesday after a relatively...   (Associated Press)
Co., publisher of The Wall Street Journal, the Journal reported on its Web site. (AP Photo/Mark Lennihan)   (Associated Press)
Co., publisher of The Wall Street Journal, the Journal reported on its Web site. (AP Photo/Mark Lennihan)   (Associated Press)
Co., publisher of The Wall Street Journal, the Journal reported on its Web site. (AP Photo/Mark Lennihan)   (Associated Press)
A trader studies his handheld device as he works on the floor of the New York Stock Exchange Tuesday morning July 10, 2007. Stocks retreated Tuesday as Wall Street, nervously awaiting a speech from Federal...   (Associated Press)
A woman is reflected on a screen showing the Hang Seng index in Hong Kong Tuesday July 3, 2007. The Hong Kong stock market set a new closing record Tuesday, boosted by gains on Wall Street overnight and...   (Associated Press)
Specialist Nicholas Orlando rubs his eyes as he works on the New York Stock Exchange trading floor, Thursday, June 7, 2007. Wall Street fell sharply for a third straight session Thursday after rising...   (Associated Press)
Specialist Gerard Petti, center, looks at his screens as he works on the floor of the New York Stock Exchange, Wednesday afternoon, May 30, 2007. Wall Street showed little reaction Wednesday after the...   (Associated Press)
A Wall Street sign is seen at an entrance to the New York Stock Exchange, Friday, May 11, 2007. Wall Street resumed its advance Friday as investors interpreted a government report of milder inflation...   (Associated Press)
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Federal Reserve  • subprime mortgages  • Wall Street  • Ben Bernanke  • inflation  • earnings reports  • corporate earnings  • consumer spending  • core inflation


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