Recent economic indicators have clearly shown that economy is going thru soft patch and markets are following economy. This is almost exact replica of last year when it went thru similar phase during summer months. There are various reasons for this soft patch: Impact of disruption in supply-chain due to 3/11 Japan Earthquake European debt problem in general and Greece's issues in particular Continued impasse in Washington regarding how to handle US's raising of debt limit which is causing rating companies to put USA on possible downgrade path Continued slowness in hiring - May month's employment report was much worse than expected with unemployment rate inching up to 9.1% Upcoming end of Fed's QE II Now the question is - are these temporary or more bad news is yet to come ? Have markets priced all bad news ? Is DOW heading below 12000 and S&P towards 1250 ? We will have to find out answers to these questions in Jun and it would most likely depend on how cor
Commentary about markets and investment ideas and some random thoughts!