Given that CDS levels and GBP/USD are showing heightened concern in the UK, I am moving this issue two spots higher as the next biggest headwind after Greece/Euro concerns.
I am downgrading China/US currency confrontation down 3 spots to 5th on the list. Gov’t focus on getting China to revalue has been diverted to the massive oil spill in the Gulf and Financial Reform.
I am upgrading Financial Reform two spots from 5th to 3rd on news of investigations sprawling to other banks. This seems to be giving political fuel to have big time changes done to financial institutions.
I’m downgrading stimulus withdrawal by one spot to 4th as there have been a myriad of other issues that have come to the fore, which may have an earlier result.
Given the latest jobs report and the revisions in prior months, I am upgrading “Job Creation” by two spots from 5th to 3rd. These increases in employment should act as a tailwind for the economy as newly created jobs would lead to more consumption.
Downgrading “Consumer Strength” to the weakest tailwind based on hiccup in april and having less of a positive effect on the economy.