5 Reasons to Think Bearish

Despite record growth, Wall Street has plenty of cause for concern, Business Week says

By Wesley Oliver, Newser Staff

Posted Jul 22, 2007 8:29 AM CDT

(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.

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

A Wall Street sign is seen in front of the flag-draped facade of the New York Stock Exchange, Friday, May 11, 2007. Wall Street resumed its advance Friday as investors interpreted a government report... (Associated Press)

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)

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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(NEWSER) - The consumer price index jumped 0.7% in May, riding high energy prices to its second-biggest spike in 16 years. But the volatile food and energy sectors appeared not to disrupt the rest of the economy, MarketWatch reports. The core CPI, which excludes food and gas prices, rose only 0.15%, just enough below 0.2% forecasts to calm inflationary fears. More»

Consumer Prices Surge Most Since '91

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5 Reasons to Think Bearish

Despite record growth, Wall Street has plenty of cause for concern, Business Week says

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inflation • Ben Bernanke • Wall Street • Federal Reserve • subprime mortgages • earnings reports • core inflation • corporate earnings • consumer spending

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CPI Registers Spring Spike

Energy, food drive big May bump in consumer spending as core inflation stays cool

Consumer Prices Surge Most Since '91

Consumer prices up 1.1%; wholesale up 1.8%.

Inflation Spikes, Cut in Jeopardy

Fed may have hands tied, as CPI soars past expectations

Bernanke Backs Quick Bailout

Fast, temporary stimulus would buoy flagging economy, Fed chief tells Congress

Inflation Still in Check as Housing Offsets Energy

Housing slump offsets energy rise to keep CPI down

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5 Reasons to Think Bearish

Despite record growth, Wall Street has plenty of cause for concern, Business Week says

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OTHER STORIES ON OUR RADAR

inflation • Ben Bernanke • Wall Street • Federal Reserve • subprime mortgages • earnings reports • core inflation • corporate earnings • consumer spending

MOST POPULAR STORIES

[ By Views ]

[ By Comments ]

More Newser Stories

CPI Registers Spring Spike

Energy, food drive big May bump in consumer spending as core inflation stays cool

Consumer Prices Surge Most Since '91

Consumer prices up 1.1%; wholesale up 1.8%.

Inflation Spikes, Cut in Jeopardy

Fed may have hands tied, as CPI soars past expectations

Bernanke Backs Quick Bailout

Fast, temporary stimulus would buoy flagging economy, Fed chief tells Congress

Inflation Still in Check as Housing Offsets Energy

Housing slump offsets energy rise to keep CPI down

About Us

Site

Newser By Users

Community

Site Maps

Tools

More News

What is Newser?