When are we going to see this weak economy? I don't see it coming at all. Only risk I see is inflationary concerns as a result of a weakening dollar. Weak economy is highly unlikely though, there is no base inflation worries (outside of import inflation) and an incredibly strong and diverse business economy here. The rest of the world is growing which will greatly increase our exports very shortly. In fact I think that might be the huge surprise of this all. American products might not be terribly competitive due to the FX, but the cachet the American names and quality in services have is unbeatable and will drive a strong export surge soon due to the more favorable FX that the market seems to be demanding right now. The US economy succeeds because of a far superior work-force in structure and capital, that advantage won't go away anytime soon.


As for S&P prices, it might go a little lower, but I sense a reversal coming not too far away. So many bears have come out of the woodwork that the standard rally to clean out the shorts could be on its way when you least expect it.