1. Unemployment Rate in USA went up to 9.1% from 9%.
2. No sign of more stimulated package to boost market confidence in US in the near future after the QE2 ends in Jun 2011. QE2 is the Fed’s current US$600 billion round of government bond buying.
3. European Union Crisis was not addressed at all! It is about to BURST and trigger another round of Market CRASH globally! The external DEBT/GDP growth is much higher than USA (which stand at about 97%). All the PIIGS nation has a DEBT/GDP ratio of more than 100%! They will not be able to hold on much longer!
4. North Africa and Middel East Crisis is going to last for a long time. It is one thing to overthrow a government. It is another to form a stable and reliable government. It typically takes YEARS!!! With the global inflation running higher, it is going to be very challenging for any smooth transition with the high cost of living.
5. The domino effect of the Japanese disaster (Earthquake, Tsunama and Nuclear Leakage) has yet to be felt fully.
6. Property bubble in China.
7. Social unrest due to the HUGE gap between the RICH and the POOR in China. This is very serious as China is now the 2nd largest economy in the world!
8. We are seeing the beginning of a similar dot.com bubble forming with the unrealistic pricing of social media stocks.
9. Nations are looking towards their own self interest, ie. looking and protecting INWARDLY their own DOMESTIC Market. This is PROTECTIONISM which will STALL any market recovery!
All these macro factors are pointing towards another Market CRASH in the 2nd half of 2011.
BEWARE and LEARN to PROTECT YOURSELF!