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The Glass is Half Full

June 20, 2011 – 5:17 pm

There was news over the weekend about Greece. There seems to always be news about Greece. This bit of news indicated that there is still bickering over the billions that is being lent to the financially bankrupt nation. The IMF wants more austerity from Greece’s politicians before releasing more money.

Greece is an issue that will pass. Next up will be the QE2 expiration and then the debt ceiling in the U.S. where Republicans and Democrats are bickering over spending. There is always something new to worry about. Some things are more worrisome than others and of course there is a danger in all these worries that they will upset the economy.

That is not going to happen this year. The reality is that the U.S. growth rate will struggle along at a little better than 2% for the year. There should be a small pickup in the second half of 2011 mostly due to the stimulus of reconstruction in Japan and the easy money policies of our government. Also, at some point in the second half of the year China and India will stop trying to slow their outsized growth because of high inflation and once they do there is going to be a strong rally in their stock market which should also be reflected somewhat in ours.

Actually, things are looking up though you wouldn’t believe it listening to the headline news.

Good Trading
Steve Peasley

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