Things to Be Nervous About in 2007

The World Bank has out a lengthy new global economic outlook report filled with things to fret about in 2007. Here are just a few of ’em:

  • An oil-sector supply shock could disrupt growth
  • A disorderly unwinding of global imbalances remains possible
  • A housing market crisis could cause a recession
  • Overheating could provoke a sharper slowdown
  • Avian flu is still a worry
  • Marine fish are under increasing pressure
  • Global temperatures are rising
  • Climate change could have a catastrophic impact on some countries

Whew, there is so much to worry about. On the other hand, and not to take anything from these serious issues, especially climate change, from a contrarian point of view all these worries are reassuring. After all, they’re all known, and the market does climb a wall of worry, so 2007 could be a very good year indeed on the major markets as we ascend this particular Eiger.


  1. These are only the known unknowns. The real worry is the unknown unknowns.