Monthly Archives: June 2012

Market Commentary: Second Quarter 2012

Despite a nice relief rally in the first quarter, investors were once again overwhelmed with renewed fears of a Euro Zone collapse which contributed to the increased volatility sending the S&P 500 down 3.28% in the second quarter of 2012, but still up 8.31% year-to-date. Other issues causing increased volatility included concerns surrounding the fiscal path of the United States and fears of a Chinese slowdown.

Similar to 2010 and 2011 mild improvements in the global macro-economic landscape have been overshadowed by the threat of a disorderly Greek default and broader fears of the solvency and viability of the entire European Union.

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June 29 Update

Hello everyone,

“Crisis Fatigue”

Once again markets remained fixated on Europe as EU leaders met for their 18th summit on Thursday. As investors we have “crisis fatigue” as the media continues to heave one crisis after another at us. Since the Lehman incident in 2008 to the Japanese tsunami, fear of China’s hard-landing, fear that Greece will leave the Euro and now fear of a European banking collapse, it is not surprising that many investors are starting to lose confidence which has led to emotional selling in the markets.

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