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
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)
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(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