Although economic doomsayers often have been proven wrong in the past few years by the remarkable resilience and flexibility of the U.S. and other leading economies, the threatening nature of these bears is something to keep a close eye on. Consumers are more likely to reduce their spending the longer energy prices stay high and the more they worry about asset values.
Although some may argue that this is not much of a threat given that oil prices have risen to $ a barrel without slowing global growth or igniting second-round inflation, geopolitical risks unabated and could interrupt oil supplies from a number of important oil producers. Political risks could escalate even as oil supplies remain tight.