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Though the confusion persists, giving the bears the chance to once again emphasize that markets have run ahead of themselves, a big correction is due and so on and so forth…But despite this pessimism, are markets falling, the answer is NO, developed markets either trade sideways or move higher.
Is conflicting news flow such as these given below creating confusion; might be YES, but I believe the bias is on the positive side. While the consumer might not have started spending; but it’s not as sluggish as it was three months back. To see an end of contraction for Germany & France GDP, I believe sets the tone for the other markets to follow the move.
I certainly believe the bottom has been seen at-least with respect to stock market way back in March, specifically March 9th 2010 (refer my article dated 10th March 2009, titled “OPTIMISM PLAY: BULLS ARE BACK ATLEAST FOR NOW WITH MARKETS TRYING TO FIND A BOTTOM ON THE BACK OF HOPE”. Asking this question makes more today on a day when Germany and France saw an end in Economic contraction and declaring that the recession has ended in both the countries, though the entire euro zone is still in negative territory.
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