In the process he will undermine world stock markets. The fundamentals remain good. Inflation, despite the doubling of the oil price, has never really risen during the period of fast growth. On the slowdown you are going to get some very low inflation numbers. In most of the world profits are growing briskly, partly because job insecurity has persuaded wage earners to be restrained in their pay demands.
Profits are good, inflation is good and the fiscal situation is good.
And as soon as the monetary situation becomes attractive, stock markets will go up again, probably in the late autumn. In this climate it is best to go for boring blue chips in old economy sectors - such as utilities or oils. Avoid emerging markets and technology stocks - in bearish conditions they will fall further. I dislike telecoms. Although demand is growing, supply is also growing very fast.