Saturday, February 27, 2010

Global Economy is actually improving

Those who fear that the US economy will undergo a double dip recession in 2010 are running out reasons for maintaining such a pessimistic view because the surprise move by the Fed last week, is actually some tightening but it will be gradual.

The macro backdrop for the US and global econmy is actually improving, month by month, quarter by quarter. Please read more about economy indicator.

Our Forecast!
a)First Phase :-
The first phase of the rally (March 2009) was a logical reaction to the irrational selling at the end of 2008 and early 2009.
b)Second Phase:-
The second phase will start when investors are convinced that the current economy and earnings recovery are on a sustainable non-inflationary path and not just relying on government steroids. The second phase of the 2009 bull market should be starting sometime in the next few months.

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