Commentary - 2nd April 2012
It seems clear that the market is not willing to sell-off broadly just yet. What is not obvious though is the mixed fundamentals behind this rise. If the economic conditions are truly improving due to a true growth/increase in manufacturing, consumption and utilization, then such scenario should call for lower unemployment, higher commodity prices and higher consumer sentiment. However, not all of that is currently happening - cases in point - still high unemployment, $TRAN not confirming the rising market trend, $CRB index is deviating. It appears that this rally is mostly driven by financials, housing, retail and Technology. Surprised? Its just a matter of time when the actual underlying fundamentals will take stage and the sectors will rotate again - money will move into precious metals and housing will sell off. Lets see.