Spring 2010: A Short-term Outlook for Stock Market Is Positive

Retailers and consumer discretionary stocks demonstrate a strong performance. Retail sales posted a surprising increase in February (sales rose 0.3%). Although some analysts doubt that the spending gains can be sustained since the unemployment rate still remains high (9.7% in February), fundamentals of many companies gradually started showing improvements.

If the overall US national debt over the next few years rises to 100% of the gross domestic product, it will be alarming signal for the International Monetary Fund and international markets. However, many economists believe that US will be able at least keep the national debt stable relative to the size of the economy.

More positive news:
Recovery hope
It is still manageable at the current level of US federal budget deficit

...and negative ones:
Congressional estimates
Dead Cat
Death of American Capitalism
Wall Street Loses
US debt will keep growing even with recovery

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Nothing in this piece or in this blog should be construed as investment advice in any way. Always do your own research or/and consult a qualified investment advisor. It is wise to analyze data from multiple sources and draw your own conclusions based on the soundest principles. Be aware of the risks involved in stock investments.