The Fred Report - Monthly May 2013

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Stocks have had a strong rally, and have hit price projections made last November. Sentiment indicators have weakened suggesting the next drop could be sharper than previous short-term corrections. Transports and economically sensitive sectors have started to lag. Commodities, XLB, and Emerging Markets are weakening. There has been strength in fixed income. This could suggest weakness in the second half of 2013. We will sick with our forecast for a weaker second half to 2013.

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