Stocks followed the plan yesterday and closed up to cap off a very strong month and a scramble by professional investors to dress up their portfolios for the end of the quarter. Now it is time for reality to set in. Social unrest seems to be rearing its ugly head as protests regarding lost jobs in France have created scenes. The demonstration in England is a focus as the G-20 meeting begins. The economic uncertainties around the world and the growing unemployment is putting huge strains on people and their families. Hopefully, the anxiety won't lead to chaos.
As for the markets, volatility will remain for awhile. ADP numbers show continued weakness in the jobs market and comments from CEO's in the next few weeks should set the stage for the outlook of our economy. The path to postiive returns won't be easy and the economic picture won't improve much for the rest of the year. Cash is king and we await the plethora of news regarding the auto manufacturers, housing, unemployment, G-20, mark-to-market accounting and corporate earnings. Stocks will follow the tea leaves.
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