I keep hearing the same the same thing on the conference calls. #1. Fuel costs. #2 Commodities costs having an impact, raising prices and passing on to consumers. #3 US consumers buying less, but making up profits on international sales, taking advantage of weak dollar. #4 consumers spending on discretionary is decreasing. yadda yadda yadda. Right now Multinationals that pay dividends look good, and of course oil companies. Financials, too much opacity for my tastes and I think more bad news to come.
Inflation is out of control. With the big TAF auctions the past few weeks, you can see what it is doing to every major market. There is going to be a very big correction from here, once all this liquidity is done pumping into the system. January price action will be nothing compared to what's coming.
With inflation and financial industry unwilling to lend each other money, holding on tight, slowing down of economy it will be an interesting 12-24 months. This is going to be slow.