FinancialEdge: Top 6 Scariest Possibilities For The U.S. Economy

If it can go wrong, it will go wrong. That will no doubt strike some as the unofficial motto of the pessimists' society, and savvy institutional investors often make decisions on that basis. While there are many things that investors can do to diversify their exposure to the U.S. economy, the reality is that for many people the health of their portfolios is predicated on the health of the U.S. economy. To that end, and a bit ahead of the upcoming Halloween season, it is worth examining some of the scariest possibilities for the U.S. economy. (For more, read 10 Reasons To Fear The U.S. Economy.)

Energy Shock 

An energy shock may be one of the most credible threats to the U.S. economy. Although the Arab Spring movement seems to be petering out and al-Qaida has been undermined, it is still not ridiculous to think that Saudi Arabia could be vulnerable to violent revolution. Similarly, if Israel were to inflame Mideast tensions (say, a strike on Iran's nuclear facilities) it could lead to another OPEC boycott.

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