According to a recent survey by The Wall Street Journal, economists feel the biggest threat to the U.S. economic recovery is a negative international event. In recent months, there has been a flare-up in geopolitical risks. For example, the conflict in Iraq is intensifying and could cause oil prices to rise further. U.S. equities have held up well this year and reached new highs despite increasing international risks. However, U.S. equities remain vulnerable to a selloff, especially if consumer and investor confidence sours from rising oil prices.