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The wuthering heights of S&P 500

With the S&P 500 2012 year-end earnings estimates at the lowest they have been all year, corporate revenues negative QoQ, the US economic output sliding and GBP back under 2% along with another step backward in housing, we can only stand back and admire the S&P 500 closing to new 2012 highs. Whether this could lead the Fed to stay on hold in the near term is uncertain. What is certain though is that if the Fed sticks to its wait-and-see approach in September’s conference, a move before December as we head into the presidential race would be extremely unlikely, since after the upcoming meeting there are no more meeting until 12/12. Will the consequences of being wrong not to act be enough to push the Fed in favour of renewed balance sheet? We will find out in two weeks’ time…
Dafni Serdari
Market Analyst

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