- government spending - “under current law, on January 1, 2013, there’s going to be a massive fiscal cliff of large spending cuts and tax increases,” and “I hope that Congress will look at that and figure out ways to achieve the same long-run fiscal improvement without having it all happen at one date”,
- growth - "we do not see at this point that the very severe recession has permanently affected the growth potential of the U.S. economy”,
- oil prices - ” when you have shocks to commodity prices arising from geopolitical events and the like, those are unambiguously negative, and they are bad for both households and for the broader economy",
- housing - “right now there is still uncertainty about where the housing market is going, which I think is troubling” and
- unemployment - “one concern we do have, of course, is the fact that more than 40% of the unemployed have been unemployed for six months or more. Those folks are either leaving the labor force or having their skills eroded.”
Mostly improving economic data has had a positive impact on many markets. A renewed focus on the U.S. government deficit, along with heightened oil prices and the continuing decline in home prices may present headwinds for the economy and investors.