Inflation came in at eight percent this week, higher than the GDP growth of seven percent. I think that it very concerning, and we are starting to see a lot of firms lowering their GDP growth forecasts, says Ken Van Leeuwen, of Van Leeuwen & Co. The demand side of the economy is strong, the Fed is tightening, plus inflation may decrease consumers' appetite to spend, he explains. The declines in the savings rate could cause the economy to slow down, he adds. There is a stagflation risk, but we don't have unemployment increasing, he says. The broadening of wage inflation recently, could see broader price inflation. We need stocks to stop declining and take a rest, but we haven't seen that, and that does concern us, he adds. Ken says they are increasing their commodity exposure and says we need to get a little more defensive. He likes beverage and food stocks, for example.