- QE II will be ending which might effect both bond yields and investor psychology.
- We will see large offerings of AIG and Ally stock
- Fiscal stimulus will continue to wear off over the Summer.
- Sovereign and municipal imbalances might start to matter again.
- The creep of inflation might become more pronounced.
- Seasonality will be negative.
Not A Raging Bull
While I lifted my hedges today, I am not a raging bull. Specifically, I see the possibility of some further downside in the next week or so. But I do expect April to be a relatively good month. Once April passes I see the potential for a larger correction: