The Fred Report - Monthly June 2013
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 are entering seasonally favorable periods and could advance. Bonds have weakened in accordance with long-term forecasts but are oversold and there could be a short-term rally. We will stick with our forecast for a weaker second half to 2013 for US equities, however.
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