The global markets on a distinct three month pattern that begins with earnings and ends with policy makers.
As a purveyor and observer of newsflow, there appears to be a distinct pattern to our investment world right now.
Not surprisingly, it is a quarterly time frame.
One, we get real news on earnings and outlook from companies. Two, we get the interpretation and clarification from analysts/strategists on what these numbers mean for each sector and the economy. Third, we get economic data to support or negate this viewpoint with economists providing their outlook. Fourth and finally, we get policy makers such as the Fed/ECB/BOE and Congress/White House/Parliaments detailing their plans and actions to help stimulate or restrain certain participants or aspects of the economy.
Wash, rinse, repeat.
While this may not be shocking news to anyone, I think it is helpful to restate the obvious to clarify where we can go from here. The 2nd quarter was extremely difficult due to number 4. The sovereign debt crisis in Europe was handled poorly and massive uncertainty was created.