Consumer confidence had its first consecutive monthly drop in 14 months and the largest miss vs. expectations on record. Coming in at 76.8 (against an expectation of 82.0), this is the lowest in five months and points to the picture of a consumer increasingly affected by rising interest rates and soaring gas prices amid stagnant incomes.

This is the exact same pattern that has played out in the last two cycles and suggests significant downside risk to US equities. The economic outlook sub-index collapsed to its lowest since January.

And finally with the implementation of Obamacare reeking havoc on family finances and ruining one of the best heath care systems, the economy is destined to get worse. The  people being hit first are retirees from a number of large companies, including IBM and Time Warner, who have been tossed into the Medicare-eligible  insurance exchanges. For those Obama supporters who don’t know the difference between a health care system and a health insurance system, let me make it simple for you. Our health care system doesn’t turn away anyone, including illegal aliens, in need of emergency services. Health insurance companies provide selected coverage to those who can pay based on a number of factors including age, sex and demographics.

If you like what’s happening to this country, I wish you well. But don’t look up, it could be hazardous to your health.

– Karl Kachadoorian, Tryon