Weakened energy sector

first business opportunity : In the midst of economic uncertainty like this, the energy sector stocks and industry who are victims first. Understandably, since early 2011, expectations of economic recovery have made ​​the shares in the two sectors are dashed. The S & P for the energy sector, for example, has risen nearly 12% during 2011.

Well, on Wednesday (4 / 5), the index was down 1.6%. Meanwhile, S & P index for the industrial sector were also down 1.4%.

Worryingly, the Chicago Board Options Exchange (CBOE) Volatility Index, or VIX also has reached 17.08. This index shows the level of stock market fluctuations. The higher the VIX index, the higher the risk of fluctuations in the market. "The longer stay above the number 16, it is increasingly dangerous," wrote Larry McMillan, President of McMillan Analysis Corp. in his research.

In these circumstances, Doug Kass, founder and President of Seabreeze Partners Management, in Palm Beach, Florida, suggested that investors be cautious. "Better tend to be conservative and increase the cash position," he said.