Inflation has been one of the issues concerning me most. It appears that the consumer is going to be hit with substantial food price inflation (even after last year's rise). Add high fuel costs and the fact that most people's largest investment, their house, has been dropping in value, its a tough time for consumers right now.
PPI is up 7.4% year over year. It is going to be very hard for Bernanke to sell another rate cut. Over the past six months, they've been able to shuffle numbers and say that inflation was kept in check which allowed for rate cuts. Now, there's no telling what will happen to rates. Although Bernanke must be under big pressure politically to help the markets. This is an election year, and Bernanke want's to get in good with the new president so he can keep his office.
Boeing (BA) looks fairly attractive here. The next few years should be solid as they roll out the 787's. I also continue to like oil service stocks. Noble (NE), Schlumberger (SLB), and also take a look at National Oilwell Varco (NOV). They provide cranes and other services to offshore rigs which is a booming market right now.
Disclosure: Author owns NE.