October: Is It Time for Bull?

Lately, the economists re-evaluated their previous estimates and significantly lowered the predictions for the US economic growth this year and in 2012. This fundamental equilibrium reset, as one-time event, coincidentally has combined with a cyclical September-October low market season. A high volatility, remaining macroeconomic risks, and crowd fears persist. A lot of confusions still dominate the stock market. What is next to expect?

Europe troubles might continue to affect the global markets. The unemployment rate and housing market might not improve quickly. However, the US corporate reported earnings continue to exceed the profitability estimates in most cases. A lot of stocks are now cheaper than during the 2008-2009 market calamity. The future expectation is the thing that drives the market, not the past performance. That is why many investors and traders hope for rallies.