Back in the United States, stock markets continue a retreat. The indexes have fallen for most of the past 10 trading days on a slow American economic recovery, as well as concerns about a financial cliff due to the lack of a deal on individual taxes for 2013.
Also, the trouble in Europe has started to erode corporate profits, which will extend the “hiring strike” among U.S. companies that are unsure business conditions will improve enough to add workers. Recently, the International Monetary Fund said American GDP growth could be less than 1% next year, if the political gridlock in Washington cannot be broken to offer Americans some reason for hope about the economy next year. All of these factors taken together make a summer rally in the markets very unlikely.
Douglas A. McIntyre