February markets rallied following the dip in January with the Dow Jones closing above 18000. Smaller company stocks show recovery after lagging last year and again outperform large company stocks. Technology continues to lead market growth as it has over the past ten years. A market correction is still anticipated but may take the form of continuous volatility with slower net gains over time. There is no way to know how the market will play this out.
The fiscal situation in the Euro group remains precarious. All signs suggest an eventual unravelling, as we have suggested for some time. The impact of the financial crisis of 2008 and the extended painful aftermath in Europe have proven too stressful for the Euro economies. Upcoming elections in several countries could change political support for the Euro and eventually erode its base.
There is a name for the season following winter in the North Country. Still winter. Ready for distraction, color, some projects that have been put off, plans for better times – whatever will fill this waiting time until the present moves on – the challenge of late winter. There is no hurrying it.
