Time To Sell!
If gas prices are high economic growth will inevitably slow. Economist James Hamilton has shown that gas price spikes usually leads to a recession 3/4 of a year later. His work has also proved that a rise in the gas price destroys consumer sentiment. Since we are coming from such a deep recession he doesn't think we are headed back into a recession but he believes high gas prices will definitely slow grow considerably in 2011. Here is an article by him talking about how gas prices hurt GDP growth. http://www.firstenercastfinancial.com/news/story/42821-prominent-economist-says-oil-price-surge-not-recessionary The last crappy jobs report sent the market into a death spiral and I strongly believe this will happen again Friday.