The Fred Report - Monthly May 2010

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We are seeing the short-term decline in US stocks we wanted to see, to set up a summer rally. Sentiment is getting worse. Overall, the message of the market seems to be what normally occurs in equities after a recession is in fact occurring. We remain longer – term positive on equities with a caveat – should we see the summer rally we forecast, the next decline could be the most severe of this new bull market.


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