This looks to me like the next shoe to drop. How about we contribute a list of retail & consumer-focused stocks that look vulnerable? Here are some criteria for the stuff I think is in danger: 1) Anything in the "aspirational" middle-market range. Not catering to the truly rich, but expensive enough that people will cut it back before other stuff. E.g. overpriced coffee, trendy restaurants, premium high-street/mall retailers. 2) High-cost producers - won't be able to win/survive a price war, won't be able to discount without causing huge losses. 3) Heavily indebted companies - won't have the strength to survive a genuine consumer recession 4) Smaller companies - always more vulnerable in a slowdown. 5) Credit-card companies - so far consumers have resorted to credit cards en masse to tide them over slow times. But this only works for so long, then the piper must be paid. Once the recession spreads to Main Street, credit card defaults will soar. 6) Big-ticket consumer items requiring finance. The most obvious is autos - ok, this is not exactly unnoticed by the market, car makers are down big and the main ones are unshortable. But other expensive stuff like premium white goods, home improvements, expensive computer gear could get hit hard 7) All "fad" and "concept" consumer companies 8) Higher-risk consumer/small business finance e.g. car leasing firms, factoring companies What will do well? Low cost bargain basement value companies e.g. discounters. Bigger companies with conservative debt levels. Defensive consumer stocks e.g. food. There could be some nice spread trades to put on here. Also an unusual potential play - "tin foil" companies e.g. safe & money box manufacturers, gun manufacturers, tinned food producers, liquidators & receivers For when people fear bank runs and street riots. Any suggestions for stocks fitting these categories?