This rally could extend for awhile now that a modest stock market adjustment has occurred.

On Feb. 21st, I suggested that professional money managers may start selling stocks. Many pension funds have a required return of about 8%. Their managers may have sold stocks recently to convert their paper profits into real cash profits. These same managers probably want to participate in any rally resulting from stronger US economic data such as improved employment and a better housing market.

European problems will persist, but Europe is a smaller economic force than in the past. For example, Brazil has just surpassed the UK as the world's sixth largest economy. Please see the article in "The Guardian" newspaper. http://www.guardian.co.uk/business/2012/mar/06/brazil-economy-worlds-sixth-largest?newsfeed=true

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