Wow...markets above their 2008 highs in less than 2 months....?

I have to admit the market upswing was more than anyone expected, leave alone my prediction in January 2012 end. Not all analysts agree that this will be the trajectory stock indices will take for the rest of the year. Some fear the following probable negatives could derail the upswing: 1) a possible Iran conflict, 2) continued current Chinese slow down and 3) Greek crisis & European contagion. At least we can say with relative confidence that the double-dip recession is not a threat.

Stocks are a leading indicator and from the way it looks we are going to be in the thick of business activity within this year end. Usually presidential election years are a positive year for stocks. Already several pockets of the US are beginning to have full bookings of hotels, resorts, etc. and skilled labor force is busy till the end of the year. If the summer does not scorch the stocks for any reason, we should well be seeing the economy rebound in strength. After all, these boom and bust cycles are in fact cyclical, just that this bust took a bit too longer. 

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