So What’s Next?
Towards the end of December ‘11, my analysis had suggested that Macro-Technicals point to a possible bottom. Today the macros are far better than a few months back. US, China, Japan, Brazil and Russia, comprising more than 50% of world GDP are in various stages of bottoming out and recovery. However, there is no denying that that the Eurozone economy is sliding into a recession and the worst is not over for EU.
I believe that the uptrend that started in Feb’12 will continue and the markets would very likely make a new highs over the next few months. Any shock caused by Eurozone would just continue to provide good entry opportunities for the long term investor.