Rising Dollar, Squeezing Corporate Profits
By early February the 4th Quarter Earnings Season will come to an end, and 2011 can finally be put to bed. If you simply summed the daily price changes over roughly 250 trading days, the market would have changed 250% last year. However, the market finished precisely where it started. One might infer that such volatility simply means a dead year. On the other hand, I am inclined to believe that we ended 2011 with an undecided bull-bear tug-of-war that appears to be intensifying. Before we get ahead of ourselves, let’s consider the forces working against a continued rally and why we expect a modest pullback from current levels…
