The U.S. stock market has been pretty darn ugly, and if you ask me, it's going to get even uglier. You could go looking for the few stocks that could buck the trend and go higher in spite of the bear market, but that is harder than finding a needle in a haystack. And even companies with strong business models, defensible niches, and great products are going to struggle. The common problem all U.S. companies are facing now is a deteriorating economic backdrop. Between the sub-prime crisis, a struggling real estate market, $140-a-barrel oil, rising inflation, and a business slowdown ... there's a lot of trouble out there. Meanwhile, Asian economies are showing no sign of slowing down. That is why I continue suggesting paring down your holdings in the vulnerable American economy ...

The Nikkei 225 had a positive week, up a modest 1% to 14,489.44, its highest close since early January, but fell short of its calendar year high of 14,691. Remember, keeping things in perspective is important because the N225 opened the year at 15,155 and was trading 18,000-plus last year. In spite of recent resiliency in Japanese equities, it looks like this week will be a tough one, starting with a big gap down on Monday and external factors as well as domestic economic data all putting potential downward pressure on stocks. First, weak jobs data in the U.S. on Friday and an unprecedented two-day jump in oil futures sent U.S. stocks sharply lower. Nikkei 225 futures in Chicago lost 510 points to settle at ...