I have been on vacation over last few days. The market is weak. I still expect the market will trade in a range 1000-1100 for S&P 500 and 10500-11800 for TSX. There are some risks that the market may break down lower. I have been bearish for a while. But today I would like to write some positives:
1. Interest rates will stay low for longer than expected.
2. energy and commodity prices are stable or lower. It is good for cost control.
3. Labour has no leverage to demand higher wages, except in China
4. No capital for new businesses which is good for established ones.
5. Governments around world start to be serious about deficits control, which is a long term positive.
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