Three things to add to the "Worry List"

by Laura Ehrenberg-Chesler on March 7, 2014

in Economic Indicators,Fed policy,Foreign Markets,Geopolitical

From Ed Yardeni earlier this week: “Over the past five years of the bull market, the bears focused mainly on three worries, namely: (1) a double-dip recession

in the US, (2) a financial meltdown in the Eurozone, and (3) a hard landing in China. They haven’t given up on those concerns. Instead, they’ve added three more items to their worry list: (4) the expectation that Abenomics will best online casino fail–in which case the credibility of the other major central banks that have been pursuing ultra-easy monetary policies will collapse; (5) concern that the US economy’s recent slowdown isn’t just weather related–in which case the Fed might have to stop tapering QE or even expand it again, which would certainly call the Fed’s control of the situation into question; and (6) the geopolitical landscape–increasingly reminiscent of both World Wars I and II.” The market is a leading indicator, and right now it is telling us that while all of the above remain a concern, for now, the positives outweigh the negatives and the uncertainties.

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