Brushwood is to forest fires as leverage is to financial crises

Brushwood is to forest fires as leverage is to financial crises

Two weeks ago, we wrote, "with US stocks up an incredible 79.5% from the March 9th, 2009 low, a pause or even a pullback is to be expected.  Our forecast for the S&P 500 for all of 2010 is only 8%, so reason enough to be cautious 4 ½ months into the year."

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New Year's rally fizzles on economic woes

New Year's rally fizzles on economic woes

US stocks rallied 24% between the low set November 20th and January 6th.  However, the release of universally dismal economic reports in the United States dropped stocks over 11%, leaving the S&P 500 down 7.4% on the year, and down 47.0% from the record high set in October 2007. 

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