The turnaround of the economy is taking some time, but there have been very positive signs. Stocks have been hitting all-time highs, and the price of gold has also risen to new heights. Yet, even with all the positivity, there remains worries over the market.
One economist, Jamie Dimon, gives a 30-percent chance of a market correction, saying he is "more worried than others." While there is plenty of room for optimism, there are a few reasons why the worry has risen.
Economist Joel Griffith says some economic data especially among the job market is worrisome.
"If it were not for continues job expansion in healthcare and education, we would actually be losing net jobs in the private sector," he says.
It is not just the jobs though. There is another factor piling onto the issue.
"We are seeing this slow down in a number of sectors at the same time prices are beginning to heat up again," says Griffith. "The inflation rate is about 4.8 percent annualized, which is more than double the target of the Federal Reserve."
Inflation overall has been falling, which led to some rate cuts by the Fed finally in September.
But the Fed's action on rates then is actually fueling some of the concern as well.
"The Federal Reserve is cutting rates despite the fact inflation is still far above their target," Griffith says.
Griffith adds that the value of the dollar lost about 10-percent of its value this year, which is also adding to the problem.
The economy is turning around, albeit slowly. But it will take time, and worries will still persist.
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