Like others, I try to clean off my desk before my summer vacation. This year it is particularly difficult because there seems to be several unresolved issues. I will mull them over and hopefully my subconscious will have more success than my consciousness in working through the issues.
There has been a key axis in the capital markets since late last year. One side of the axis is the European debt crisis and the other side is the strength of the world’s largest economy. This axis remains in effect, even though the major currencies have reversed directions. What has changed is the news stream and how investors interpret the news stream.