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

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5 Reasons to Think Bearish — 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 of milder inflation as a signal that the Federal Reserve might consider cutting interest rates later... (Associated Press)

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

(More Wall Street stories.)

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